Institutional Cash Managers Weigh “Good Trump” vs. “Bad Trump” Investment Scenarios

1 min read

On November 8th, many corporate cash managers plotting their 2017 investment strategies confidently anticipated a “more-of-the-same” Hillary Clinton administration. But instead, they woke up on November 9th wondering where in the world President-elect Donald J. Trump might lead the economy. Will a “Good Trump” succeed in delivering consistent economic performance? Will he (more or less) follow traditional, predictable pro-growth Republican priorities? Or, will we experience a “Bad Trump” economic scenario, with heightened risk from the types of unpredictable and sometimes conflicting policy pronouncements Presidential Candidate Trump made during his campaign?

This month’s Capital Advisors Group research report—How a Trump Presidency Will Impact Treasury Portfolios—looks carefully at key issues corporate cash investors will have to weigh. We can’t predict which President Trump will show up on January 20th. But we do analyze how interest rates, credit risk and event risk may play out under either scenario. You’ll see that our best short-term advice is to strike a neutral posture, with broad diversification and interest-rate-neutral strategies. A little calm over the next quarter or two may offer temporary peace of mind amidst all the uncertainties.

By the end of the first 100 days of the new administration, we expect to have a better sense of likely future portfolio impacts stemming from new economic policies so stay tuned. In the meantime, please download our report for essential insights into cash portfolio strategies heading into 2017.

DOWNLOAD FULL REPORT

Best Regards,

Ben Campbell
President & CEO

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