Best and Worst US sectors during Trump’s first 100 days
By Kristen McGachey, 26 Apr 17
Trump’s first 100 days in office have been jam packed with outrageous tweets, ‘alternative facts,’ a failed healthcare bill and foreign policy blunders. But, what were the best and worst performing US sectors during Trump’s first 100 days?
If American consumers’ appetite was wetted to spend money on non-essentials, it’s no surprise that they were also spending on food and other household items.
The current winners, including consumer staples, stand in “stark contrast to the whole Trump trade philosophy,” remarked Brewin Dolphin head of research Guy Foster.
“I’m not surprised there were big moves in those sectors to cyclical stocks initially. CPI ticked up just one month before he got into power. Also, he came in with an inflationist agenda, which made it very easy for the sell-side research to say something is fundamentally changing and investors really bought into that.
“Suddenly, the story becomes quite the opposite – Trump can’t deliver his brand-new agenda and inflation is starting to come off a little bit. That’s why it is important for investors to be more focused on economic fundamentals. US growth, while all right for the time being, could be slower for the next three months or so,” he cautioned.
Total returns for the US consumer staples sector were 2.41%.
Tags: Donald Trump | Investment Strategy | US
