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60 seconds with Alex Tedder on global equity opportunities in 2017

Alex Tedder explains how Donald Trump's policies could affect global stockmarkets in 2017.

12/22/2016

Alex Tedder

Alex Tedder

Head and CIO of Global and US Equities

Markets have already reacted positively to Trump

2017 is all about Trump. Will he execute, or not? He’s made a lot of promises and the market has reacted to that very positively already.

Now, he needs to deliver, and he needs to deliver on multiple fronts.

As we’re probably all aware, that’s two main things: a big spending programme - infrastructure spend in particular; and tax cuts – corporate tax cuts and probably personal tax cuts. If he puts both of those through, the outlook for the US market in 2017 is good.

US earnings growth should be strong

Valuations are high but earnings growth will be strong in the US market as the economy continues to accelerate and the US will lead the rest of the world. So even though many other economies are lagging the US, we expect growth to pick up in those economies, particularly in emerging markets where currencies are very competitive.

Overall, the outlook remains uncertain and politics will remain a feature in 2017 in Europe. But if the US delivers, equity markets will deliver.

The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.