By Annabel Brodie-Smith
So Trump won and the beginning of a new era will start on the 20th January 2017 when Trump is sworn in as President. So far Trump, President-elect seems much more considered than Trump, the angry candidate. Of course it’s way too early to tell how a Trump Presidency will look but after some volatility, markets have mainly taken the new President in their stride.
However, it’s an appropriate time for David Prosser to take a look at investment companies and managing equity risk and he quotes Warren Buffet’s infamous words, “Be fearful when others are greedy and greedy when others are fearful.” His article features investment companies with a wealth preservation mandate including Capital Gearing Trust and Ruffer Investment Company. Capital Gearing is managed by the legendary Peter Spiller, co-manager of Capital Gearing who has the benefit of experience being the longest serving AIC manager with nearly 35 years under his belt. Peter is concerned that Trump’s infrastructure spending spree combined with the delayed impact of quantitative easing will fuel inflation.
These views were echoed by Hamish Baillie of Ruffer Investment Company, who now sees a return to inflation as “the greatest risk…to savers’ capital”. Read more from these managers in this month’s newsletter. With all this serious news we need something cheerful, so we have an amusing and informative week in the life of Alastair Laing, co-manager of Capital Gearing, “Oh my Lord, they haven’t actually done it...yes they have …they have elected Donald Trump.”
We also hear from Henderson Global Investors' Peter Webster who works alongside Ian Barrass and James de Bunsen on the Henderson Alternative Strategies Trust and explains, “With both equity and bond markets trading expensively, monetary support falling and political shocks increasing” it is time to look at flexible investment mandates.
Finally, research firm, Quoted Data has produced a 44-page guide to investment companies which you might find useful.
See you next month.
Annabel Brodie-Smith, Communications Director, AIC