Video Webcast

60 seconds on Clinton versus Trump

19/10/2016

Marcus Brookes

Marcus Brookes

Head of Multi-Manager

We’ve just had the first presidential debate and it seems to be that Hilary Clinton has come out as being the winner of that particular debate – there are more to go but it just brings to mind, what does this actually mean for clients of our portfolios? What we are faced with, with the US election is two very different characters but two very different candidates and the policies they’ll bring to the White House.

On the one hand, we’ve got Hilary Rodham Clinton who is very much the establishment figure; she’s a democrat, she’s well known to be a fiscal conservative, so for those thinking there’s going to be helicopter money coming in the US, maybe they need to play that down a little bit. She’s known to be a foreign policy hawk, so the US involvement in places like the Middle East and so forth, that’s likely to continue under a Hilary Clinton administration. Her views on healthcare are very well known, she thinks it’s far too expensive so maybe healthcare stocks are something people should be thinking about as well if Hilary Clinton were to win.

Now, Mr Trump on the other hand, much less is known about him and he doesn’t really help himself. In terms of his policy, we all know about “The Wall”, we know that he wants to spend an awful lot more on defence, he’s saying that he’ll spend about $90 billion more per annum on defence. We know he’s talking about a very very big fiscal easing, this could be very stimulatory to the US economy and therefore that could see the US stock market really take off on the back of that. Whether or not he’s fit to become president only the electorate can really tell us but I do think this will be a crucial factor for people’s investment portfolios. 

 

Important Information
Any security(s) mentioned above is for illustrative purpose only, not a recommendation to invest or divest.
This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The views and opinions contained herein are those of the author(s), and do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended to provide, and should not be relied on for investment advice or recommendation. Opinions stated are matters of judgment, which may change. Information herein is believed to be reliable, but Schroder Investment Management (Hong Kong) Limited does not warrant its completeness or accuracy.
Investment involves risks. Past performance and any forecasts are not necessarily a guide to future or likely performance. You should remember that the value of investments can go down as well as up and is not guaranteed. Exchange rate changes may cause the value of the overseas investments to rise or fall. For risks associated with investment in securities in emerging and less developed markets, please refer to the relevant offering document.
The information contained in this document is provided for information purpose only and does not constitute any solicitation and offering of investment products. Potential investors should be aware that such investments involve market risk and should be regarded as long-term investments.
Derivatives carry a high degree of risk and should only be considered by sophisticated investors.
This material, including the website, has not been reviewed by the SFC. Issued by Schroder Investment Management (Hong Kong) Limited.