Don’t bet on the Trump trade

There is extensive press coverage currently on the so-called Trump trade. Indeed, there has been a notable shift into sectors expected to benefit from Trump's policies, such as financials, industrials, and energy, and away from sectors perceived as vulnerable, like technology. Additionally, the dollar might strengthen due to more isolationist policies and potential higher inflation. Before investors restructure their portfolios following Biden's withdrawal from the presidential race, we caution that the world is complex, and there is no straightforward Trump trade, as evidenced by the market reactions following Trump's first presidential election in 2016. We continue to uphold our long-term approach in our portfolios.