Regional Specialists Review November 2016
Disquiet and volatility are back, on a global scale. Whether they stay remains to be seen, as early post-election reactions are often reversed.
Our president-elect has articulated a verbal track record on a range of economic and geopolitical issues that could unsettle markets.
The former includes his comments on trade (a bias toward protectionism) and higher budget deficits (via very large tax cuts and infrastructure spending), for example. The latter captures his positions on immigration (much less), Muslim visitors (none), our allies in NATO and in the UN (reduced support), and nuclear weapons (more countries should have them), to name a few.
Although we haven’t believed in election promises since we enjoyed reading "Where The Wild Things Are," it’s fair to say that there is heightened uncertainty. Perhaps it was all campaign rhetoric, and policy will turn out to be OK. We’d be fine with that. For now, seeking to be good fiduciaries, we’ll take the Missouri approach on this ("show me") and continue to exercise caution.