Latest / Best of Business / Sam Dickie: Fisher Funds expert on the reaction from global markets after Donald Trump won

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Sam Dickie: Fisher Funds expert on the reaction from global markets after Donald Trump won · Best of Business

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  Speaker 2: So the Trump victory has resulted in some very sharp
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  Speaker 2: price moves and the asset prices around the world. As
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  Speaker 2: we've been discussing, equities have rallied sharply, bonds have sold off.
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  Speaker 2: Question is what's the early read from the markets? What
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  Speaker 2: does it all mean for investor? Sam Dicky from Fisher
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  Speaker 2: Funds is with us. Hey, Sam, hey, okay, what very well?
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  Speaker 3: Thank you.
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  Speaker 2: What did the equity markets think of the victory?
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  Speaker 3: Then globally it could be your big moves across the
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  Speaker 3: board in disnatia classes, but equities a strong reaction, so
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  Speaker 3: about three percent up globally, but it was very US centric.
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  Speaker 3: So as a general backdrop, the markets bullsh corporate tax
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  Speaker 3: cuts as bullish less regulation, as bush less red tape,
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  Speaker 3: and it's sort of pro growth domestic infrastructure spending. But
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  Speaker 3: moving to bonds and they sold off, which is the
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  Speaker 3: same thing as saying interest rates when happened. This is
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  Speaker 3: one thing to keep an eye on. So if you
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  Speaker 3: look at US bond yields now now they're back at
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  Speaker 3: levels we saw way back in July, which was before
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  Speaker 3: we saw that bid repricing and feed rate cuts. So
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  Speaker 3: people are bidding there that Trump will drive inflation and
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  Speaker 3: growth higher, which means higher interest rates.
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  Speaker 2: And can you read into it how much they're expecting
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  Speaker 2: the interest rates and the inflation to increase.
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  Speaker 3: You can't. You can't necessarily map a moving interest rates
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  Speaker 3: to a moving inflation. But if you look at what
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  Speaker 3: the market's pricing in terms of rate cuts by the
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  Speaker 3: feed twelve months ahead, back in July, the market was
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  Speaker 3: pricing five rate cuts and then went as far as
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  Speaker 3: pricing sort of seven or eight rate cuts at one
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  Speaker 3: point in time. Now they're only pricing free rate cuts
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  Speaker 3: and the twelve months ahead. So people are expecting that
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  Speaker 3: the Trump's going to be reflationary and drive growth, which
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  Speaker 3: means the Fed needs to cut rates less quickly.
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  Speaker 2: Yeah. Interesting, Okay, And obviously we've seen the currencies move.
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  Speaker 2: Their USD has gone up, Crypto's gone up. How far
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  Speaker 2: do you see crypto going off the back.
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  Speaker 3: Of this, Well, I mean there's a couple of things
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  Speaker 3: coming on here right as one of these obviously very
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  Speaker 3: probate Collin and I think he said make America at
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  Speaker 3: the crypto capital of the planet. So that's all go.
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  Speaker 3: And the other thing is which I don't agree with
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  Speaker 3: this one, is that some people see crypto is as good.
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  Speaker 3: Inflation hits often fation goes up, crypto is a good
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  Speaker 3: place to be. Now that's was not true during the
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  Speaker 3: twenty twenty two inflation spike. So a bitcorn actually fell
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  Speaker 3: by seventy five percent. As hoar far ago to see
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  Speaker 3: either the other people out outside of me, you will
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  Speaker 3: be able to give you the answer that order will
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  Speaker 3: be able the answer to that.
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  Speaker 2: It's a fascinating one to look at what have you
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  Speaker 2: seen in equities across countries and the cross sectors that
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  Speaker 2: you're fascinated by.
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  Speaker 3: Yeah, definitely the US is the winner, which shouldn't comes
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  Speaker 3: any surprise. But you look at New Zealand, Australia, European
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  Speaker 3: and emerging market equipment, they're basically flat. And everyone's watching
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  Speaker 3: China obviously given the rhetoric, and that was weakest running
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  Speaker 3: into the election, but it's held up okay since So
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  Speaker 3: that's that's mildly interesting. But under the hood in the
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  Speaker 3: US is where all the actions being and some huge
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  Speaker 3: moves there. So perceived winners are domestic facing this sectors.
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  Speaker 3: So to give you a few names, US steel companies
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  Speaker 3: up thirteen percent is everyone is expecting the first tariff
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  Speaker 3: he will throw in China will be steeled back back
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  Speaker 3: in twenty sixteen twenty seventeen. US auto manufacturers up like forward,
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  Speaker 3: up five six percent because of this competition from important waders.
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  Speaker 3: And of course Tesla is up fourteen percent because Trump
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  Speaker 3: is mates with Elon. And US trucking and rail companies
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  Speaker 3: up ten percent, partly driven by less environmental and emission regulation.
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  Speaker 3: And this was quite surprising as giant banks for JP
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  Speaker 3: Morgan up ten percent overnight because he's talking less regulation
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  Speaker 3: and many roles to perceive losers sold the companies down
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  Speaker 3: twelve He said that they are part of the new
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  Speaker 3: doing scan and it's proposed griffs that will impact that sector.
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  Speaker 3: Go figure and just random on cannabis stocks down twenty percent.
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  Speaker 3: He's not in favor of legalized cannabis, but coincidentally, there
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  Speaker 3: was a couple of proposals today yesterday. I think legalized
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  Speaker 3: marijuana and Florida are other fates that failed. So outside
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  Speaker 3: of that, the only other big moves were interest rates
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  Speaker 3: sensitive companies for property and utilities. They went down because
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  Speaker 3: they want to benefit from this big growth bonanza that's
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  Speaker 3: supposedly going to come, but they will get hurt by
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  Speaker 3: highlight interest rates.
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  Speaker 2: It's a lot for investors to be thinking about with
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  Speaker 2: all the stuff going on in.
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  Speaker 3: Huge move. And I did think it called the market
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  Speaker 3: by surprise. I mean, most betting markets were expecting him
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  Speaker 3: to win, so it shouldn't have covered such a shock.
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  Speaker 3: But I suspect the market was remembering twenty sixteen too well.
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  Speaker 3: So remember the market was convinced he winn't win, and
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  Speaker 3: in the unlikely event, he did. Markets with nose dive
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  Speaker 3: and they got burnt on both counts and maybe once
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  Speaker 3: twice shy.
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  Speaker 2: Sam, thanks very much, appreciated, interesting times ahead for you,
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  Speaker 2: Sam Dicky for your funds.
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