It remains to be seen what President-elect Donald Trump will actually do but his victory does seem to argue for investments in more US-centric parts of the market. We do believe he will achieve many of his goals but they seem to be close to fully priced in.
We are constructive on the outlook for US equities given stable economic growth, predicated on sustained strength in the consumer whose forward propensity to spend appears strong.
We remain in the slowdown phase of an extended business cycle, but the unexpected events of 2016 have prompted us to take a slightly more balanced view of the end of this cycle.
In what is likely to be a volatile 2017 for markets, there should be plenty of opportunities for global stockpickers as the cyclical upswing continues.