“The first 100 days may provide a useful picture of what investors should both applaud and fear from Trump’s presidency, judged both by the hits and the misses,” Lafferty says. Goh cites this unpredictability as a reason why they have focused on investments that are less exposed to changes in the macro environment.
“In Asia, this has taken us into small-cap Japan, mid-cap India and company-specific investments in Indochina,” Goh shares. He adds that these investments are behaving as intended, driven by their specific situations and not by macro developments or factors such as foreign exchange or rates. In short, they are Trump-proof.
The bottom line
Lafferty believes that Trump is beginning to exhibit early signs of presidential practicality, perhaps even starting the natural transition from candidacy to presidency. “But investors should remember what Trump is – an easily agitated political novice with an itchy Twitter finger,” he cautions.
Likening Trump to a lion, Lafferty says: “Some lions can be trained to obey and even learn new tricks, but that doesn’t change the nature of what a lion is – an inherently unpredictable animal.” However, he adds that “presidencies are not made or lost in 14 weeks – and neither are investment portfolios”.
That being said, your best bet may still be to steer clear of investments with high exposure to macro risks such as an unpredictable Trump presidency.