Displaying items by tag: Trump

(New York)

Investors look out, it is time to go on the defensive, at least according to JP Morgan. The top strategist at JPMorgan Asset & Wealth Management, Michael Cembalest, has just told investors that the growing trade war and its threat to markets and the economy means investors need to be very worried. Cembalest points out that this will be the first sustained rise in tariffs across the global economy in 50 years and it is a profound shift away from decades of historical precedent. If the US proceeds with a further $200 bn tariff package on top of its $34 bn package, then markets could be in for a wild ride, says JP Morgan. They advise to focus on consumer staples and tech stocks.

FINSUM: This is a pretty stark warning from JP Morgan and it does make sense. Because there is little recent precedent for trade war, the market may not be accurately pricing the threat it poses.

(Washington)

President Trump faced nothing short of public and political outrage in the US yesterday, after he essentially sided with Russia’s view of the 2016 election meddling scandal. When asked about Russia’ alleged meddling in the election, Trump insinuated that he believed Putin’s side of the story more than that of US intelligence agencies (though he did not say this outright). That sparked widespread condemnation from political foes and allies alike.

FINSUM: Whatever you think of Trump’s comments, most might agree that these are some of his most provocative and risky comments yet. The reason being that appearing to “side” with Russia might undermine some of his own nationalist voter base.

(New York)

There is no denying it, small cap stocks are having their moment in the sun. The Russell 2000 is up over 10% this year, while the S&P 500 is up only 3.2%. A number of factors are powering them: tax cuts that benefit small companies more than large ones, better US than overseas growth, and a rising Dollar amid heightening trade disputes. In light of this, the WSJ has picked 3 small cap stock funds for investors to consider. They are: DFA US Small Cap Value Portfolio, T. Rowe Price QM U.S. Small-Cap Growth Equity Fund, and the Harbor Small Cap Value Fund.

FINSUM: Reading about their strategies, the T.Rowe offering looks particularly interesting and has the best five-year annualized return of 14.6%.

(Washington)

Trump has named his next choice for the Supreme Court—Brett Kavanaugh. Mr Kavanaugh has a long judicial history to review, and by all accounts, he looks like a very friendly pick both for Wall Street and wealth management. He has consistently sided with the interests of financial businesses in his rulings, including rulings against regulators like the SEC.

FINSUM: Obviously all the focus of the media is on Kavanaugh’s impact in a wider sense, but from a purely financial standpoint, he appears to be very anti-regulation.

(Washington)

We have not covered the Trump probe saga in a while, and with good reason—there has been little news. However, that may be about to change. ABC News has run an interview which seems to suggest that Trump’s former attorney, Michael Cohen, may be about to turn on the president as he prioritizes his own family. “I will not be a punching bag as part of anyone’s defence strategy … My wife, my daughter and my son have my first loyalty and always will ... I put family and country first”. He says he is not the villain in this story and does not want to be depicted that way.

FINSUM: Maybe he is about to turn on Trump, but no one knows what cards he may or may not be holding.