Mark Sherlock, lead portfolio manager of the Hermes US SMID Equity fund, believes small- and mid-sized (SMID) companies look set to be major beneficiaries in the Trump era.
The US economy was accelerating before Trump's stunning Presidential victory: unemployment was falling, wages were rising and consumer confidence was improving. However, his subsequent ascent to power has acted as a lightning rod to investor optimism. Promise of regulation roll back While consumer sentiment improvements are based on wage growth, improving small business sentiment is based on the expectation of reduced regulation. Following Trump's pledge to roll back business regulation, the NFIB Small Business Optimism index spiked, reflecting an upsurge in confidence around a...
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