Invest
Trump a ‘game changer’ for 2017 investors
Ahead of the New Year one of the world’s largest asset managers has spurred investors to adapt their strategy to a changing investment environment.
Trump a ‘game changer’ for 2017 investors
Ahead of the New Year one of the world’s largest asset managers has spurred investors to adapt their strategy to a changing investment environment.
State Street Global Advisers (SSGA) has highlighted the election of Donald Trump as a "significant game changer", saying it is bullish on US growth in 2017.
“We certainly favour US equities, and much of that is due to the potential for Donald Trump and the Republican House [of Representatives] and Senate, so it looks like we're going to see expansionary fiscal policy, and it looks like there might be a dialling back of some regulation,” SSGA head of ETF strategy Matthew Arnold said.
While Trump’s cabinet nominations are yet to be confirmed, his choices thus far are encouraging for US growth prospects, according to Mr Arnold.
“If you look at Trump's cabinet everyone's a CEO, businessman, billionaire... you name it. There's a strong focus on growing the economy, and we think US equities will certainly benefit from that, but potentially not global markets,” Mr Arnold said.
“A negative part of Donald Trump's sort of agenda would be if he pulls back on trade deals, which is not going to be favourable for those big global players if we see anything like a trade war. So we have seen that since [the election of] Trump US small cap stocks have significantly outperformed,” he added.
The US Fed’s decision to raise rates earlier this month and indications that they were on a rate-hiking path looking forward means it may be time for investors to prepare for a new environment.
“For investors that are yield-orientated, such as retirees and those with pension funds, it might be time to shift some of that income portfolio into assets that benefit from a rising rate and rising inflation environment,” Mr Arnold said.
“With equities, we think rather than focusing on pure dividend yields, focus on yield sustainability and companies that can grow their dividends over time,” he added.
With President Donald Trump inaugurated on January 20, it’s an important reminder to investors to expect the unexpected.
“We always emphasise this, but this year has really shown the importance of having a diversified portfolio," Mr Arnold said. "You never know what might happen and that's particularly relevant as we head into next year.”
RELATED ARTICLES
Property
ANZ’s mortgage growth, profit slump: why volume without margin won’t pay the dividends
ANZ lifted home-lending volumes, yet profits fell under the weight of regulatory and restructuring costs—an object lesson in the futility of growth that doesn’t convert to margin and productivityRead more
Property
Rate pause, busy summer: where smart capital wins in Australia’s property market
With the Reserve Bank holding rates steady, the summer selling season arrives with rare predictability. Liquidity will lift, serviceability stops getting worse, and sentiment stabilises. The ...Read more
Property
The 2026 Suburb Thesis: A case study in turning trend lists into investable strategy
A new crop of ‘suburbs to watch’ is hitting headlines, but translating shortlist hype into bottom-line results requires more than a map and a mood. This case study shows how a disciplined, data-led ...Read more
Property
From signals to settlements: A case study in turning property insight into investable action
Investor confidence is rebuilding, first-home buyers are edging back, and governments are pushing supply — yet most property players still struggle to convert signals into decisive movesRead more
Property
Australia’s rental choke point: why record-low vacancies are now a boardroom issue
A tightening rental market is no longer just a housing story—it’s a macro risk, a labour challenge and a strategic opening for capital. With vacancies near historic lows and rents still rising, ...Read more
Property
Rents are rewriting the inflation playbook: what record‑low vacancies mean for Australian business
Australia’s rental market is so tight that housing costs are now a primary transmission channel for inflation and interest rates. This isn’t just a property story; it’s a business risk story—affecting ...Read more
Property
Off-market real estate is going mainstream — and changing the rules of dealmaking
With public listings tight and sales still climbing, Australia’s investors are shifting to off-market channels that reward speed, networks and data advantage. The playbook is closer to private equity ...Read more
Property
Australia’s rental squeeze is now a business problem: inflation, capacity and the new growth calculus
Record-low rental vacancies are no longer just a social headline – they’re reshaping cost structures, wage dynamics and capital allocation across corporate Australia. With economists warning of a ...Read more
Property
ANZ’s mortgage growth, profit slump: why volume without margin won’t pay the dividends
ANZ lifted home-lending volumes, yet profits fell under the weight of regulatory and restructuring costs—an object lesson in the futility of growth that doesn’t convert to margin and productivityRead more
Property
Rate pause, busy summer: where smart capital wins in Australia’s property market
With the Reserve Bank holding rates steady, the summer selling season arrives with rare predictability. Liquidity will lift, serviceability stops getting worse, and sentiment stabilises. The ...Read more
Property
The 2026 Suburb Thesis: A case study in turning trend lists into investable strategy
A new crop of ‘suburbs to watch’ is hitting headlines, but translating shortlist hype into bottom-line results requires more than a map and a mood. This case study shows how a disciplined, data-led ...Read more
Property
From signals to settlements: A case study in turning property insight into investable action
Investor confidence is rebuilding, first-home buyers are edging back, and governments are pushing supply — yet most property players still struggle to convert signals into decisive movesRead more
Property
Australia’s rental choke point: why record-low vacancies are now a boardroom issue
A tightening rental market is no longer just a housing story—it’s a macro risk, a labour challenge and a strategic opening for capital. With vacancies near historic lows and rents still rising, ...Read more
Property
Rents are rewriting the inflation playbook: what record‑low vacancies mean for Australian business
Australia’s rental market is so tight that housing costs are now a primary transmission channel for inflation and interest rates. This isn’t just a property story; it’s a business risk story—affecting ...Read more
Property
Off-market real estate is going mainstream — and changing the rules of dealmaking
With public listings tight and sales still climbing, Australia’s investors are shifting to off-market channels that reward speed, networks and data advantage. The playbook is closer to private equity ...Read more
Property
Australia’s rental squeeze is now a business problem: inflation, capacity and the new growth calculus
Record-low rental vacancies are no longer just a social headline – they’re reshaping cost structures, wage dynamics and capital allocation across corporate Australia. With economists warning of a ...Read more
