Markets ‘Unmoved’ by Trump’s State of the Union
U.S. and global financial markets are unlikely to be “unmoved” by President Trump’s 2019 State of the Union address on Tuesday evening, affirms the CEO of the one of the world’s largest independent financial advisory organisations.
The comments from Nigel Green, founder and chief executive of deVere Group which does business in 100 countries globally, follow Mr Trump’s second State of the Union address before a joint session of Congress shortly after 9 p.m. ET.
Mr Green notes: ”President Trump today delivered a speech promising increased fiscal spending, affordable drugs and protection of American jobs.
“It could have been from a European socialist politician with nineteenth-century ideas on the benefits of managed trade, rather than free trade.” He continues: “Trump repeated his promise that ‘the theft of American jobs and wealth’ will come to an end.
“There was no commitment made to free trade, suggesting his preference for managed trade and protecting producer interests -which he defines as ‘jobs’ – will persist.”
“We do not expect financial markets to move, since this is how we understand Trump already.” He continues: “There were no major surprises for investors. He didn’t, for example, declare a state of emergency over funding for The Wall and he didn’t make any off-message comments on China. “As such, the markets will pretty much carry on as before.”
Mr Green concludes: “However, with many of the major issues that could impact markets and returns still hanging in the air, investors need to ensure that their portfolios are properly diversified. “This will position them to be able to mitigate risks and take advantage of the inevitable opportunities that will arise.”