Europe’s Biggest Fund Manager Says U.S. Stock Bulls Got It Wrong
- Market rally following Trump election ignores downside risks
- U.S. equity markets could go further into ‘bubble territory’
How to Ride the Trump Rally
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Amundi SA, Europe’s largest money manager, says investors who have driven U.S. stock markets to record highs in expectation of fiscal stimulus from the Trump administration may be in for a surprise.
While a pivot to government spending and tax cuts may prolong the economic expansion in the U.S., Republican lawmakers will insist that fiscal measures don’t push up the deficit, Didier Borowski, the Paris-based asset manager’s head of macroeconomics, said in an interview. Even if President-elect Donald Trump succeeds in delivering stimulus, it won’t have an impact before next year, he said.