Three key investment themes will emerge after the US presidential election, irrespective of who wins, a major asset manager has suggested.
While Hillary Clinton and Donald Trump may be diametrically opposed in many policy areas, NN Investment Partners (NNIP) said they are harmonious in three key respects.
For example, both candidates agree US workers are underpaid, and have pledged to raise the minimum wage – and they both plan to increase government spending on infrastructure and the military.
Moudy El Khodr, senior US high dividend portfolio manager at NNIP, said both presidential candidates have made spending on America’s roads, bridges, power grids and airports a top priority. Major infrastructure investment would have the knock-on effect of stimulating the economy by creating jobs, in turn creating a lot of opportunities in the industrial and material sectors.
“No matter who becomes Commander-in-Chief, military spending is likely to increase. We wouldn’t invest in the defence sector specifically but more expenditure will boost demand for support sectors, including industrials and IT related to cyber security or government services,” he said.
“Median household income in the US has also declined relative to inflation over the last 15 years, and the $7.25 (€6.53) federal minimum wage has remained the same since 2010. If Americans do end up with more money in their pockets after the election, this will be a boost for consumer cyclicals, especially the consumption related sectors such as consumer discretionary or even consumer related IT.”
NNIP manages assets of over €197 billion, as of June 30 2016.
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