Trump trade rotation: Why US businesses can still flourish

Retail and autos particularly affected

clock • 2 min read

Year-to-date the Russell 2500, the US small and mid-cap index, has returned 2.8%.

Digging deeper, there has been a rotation out of some of the beneficiaries of the so-called "Trump trade" (banks, industrials) into parts of the market (healthcare, technology) which relatively underperformed in the post-election euphoria of the President's pro-growth policies.  This rotation reflected the weaker economic data coming through in February and March and a realisation that many of Trump's policies are controversial and will likely require compromise.  US equity funds see biggest outflows since Brexit At the same time, an improving European economy and Emmanuel Macron's...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

US-tariff landscape shifts with increased levy on China as officials warn Trump of 'havoc' wrecking policies
US

US-tariff landscape shifts with increased levy on China as officials warn Trump of 'havoc' wrecking policies

California suing Trump over tariffs

Eve Maddock-Jones
clock 17 April 2025 • 3 min read
Jerome Powell warns Trump's tariffs could jeopardise Fed's inflation and unemployment targets
US

Jerome Powell warns Trump's tariffs could jeopardise Fed's inflation and unemployment targets

Speaking at the Economic Club of Chicago

Sorin Dojan
clock 17 April 2025 • 2 min read
BCA Research's Matt Gertken: Trump turns to Iran
US

BCA Research's Matt Gertken: Trump turns to Iran

'Major crisis is likely this year'

Matt Gertken
clock 15 April 2025 • 4 min read
Trustpilot