Why Trump Helped Himself Last Night
Author: Greg Valliere
February 6, 2019
IT’S MANDATORY TO MAKE SOME COMMENTS after a State of the Union address, even though these long, long speeches are largely forgotten within days. So here goes with some quick takes:
A LITTLE BOUNCE IN THE POLLS: Most presidents move the needle a few points in these speeches, and it appears that Donald Trump did as well. Unscientific overnight polls showed he got what he needed — generally positive grades and strong support from independents. So Trump’s re-election campaign began last night with mission accomplished: no real damage and a little uptick in the polls.
IT’S THE ECONOMY STUPID: As we suspected, Trump played to his strong suit. His long litany of economic positives was exaggerated as usual but mostly accurate; whether he deserves all the credit is debatable, but no matter — the economic fundamentals are solid and he won’t let anyone forget it.
THE PRESIDENT GETS TO MAKE NEWS: A master of teasing a big announcement, Trump made news last night: he and North Korean President Kim Jong-un will meet later this month. Making real news, changing the narrative, is a perk that presidents have and their opponents generally lack.
DID TRUMP SOFTEN A BIT ON THE BORDER WALL? Trump sounded slightly less rigid on a wall compromise, emphasizing “border security.” He undoubtedly knows there would be a rebellion among congressional Republicans if he allows another shutdown, so the message this week from the White House is that a deal is still possible.
CHUTZPAH AWARD: For Trump to plea for civility and bipartisanship was rich, but more importantly it didn’t really change the outlook for legislation: everyone agrees on the need to improve the country’s infrastructure and control drug prices, but there’s no agreement on the details. Both parties are simply looking for issues to exploit as the next election approaches.
THE ELEPHANT IN THE ROOM: Trump couldn’t resist a complaint about “ridiculous partisan investigations,” which will hound him this year as House Democrats subpoena and Robert Mueller indicts. Trump thinks the public is tired of this and doesn’t care; we’ll see.
WHAT ABOUT THE MARKETS? There were no real surprises for investors, who have to expect headline risk for drug companies and tough talk on trade. The markets will always be wary of Trump because of his unpredictability, but he’s hitting the right notes — even inviting Jay Powell to the White House for dinner a few days ago.
TRUMP KNOWS THE ECONOMY AND THE MARKETS will be huge factors in his re-election campaign. So will the mood among center-right voters, so it made perfect sense for Trump to sharply attack socialists and late-term abortion. An uphill election fight still looms for Trump, but he got off to a decent start last night.
The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies.
The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.
AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), Highstreet Asset Management Inc. (Highstreet), AGF Investments America Inc. (AGFA), AGF Asset Management (Asia) Limited (AGF AM Asia) and AGF International Advisors Company Limited (AGFIA). AGFA is a registered advisor in the U.S. AGFI and Highstreet are registered as portfolio managers across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. AGF AM Asia is registered as a portfolio manager in Singapore. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.
The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.
AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), Highstreet Asset Management Inc. (Highstreet), AGF Investments America Inc. (AGFA), AGF Asset Management (Asia) Limited (AGF AM Asia) and AGF International Advisors Company Limited (AGFIA). AGFA is a registered advisor in the U.S. AGFI and Highstreet are registered as portfolio managers across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. AGF AM Asia is registered as a portfolio manager in Singapore. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
For further information, please visit AGF.com.
© 2020 AGF Management Limited. All rights reserved.
