The Trump Presidency 2.0 is creating uncertainty and volatility for the global economy and markets, and we feel that the following three key themes will dominate the investment outlook: a return to supply side policies in the US, increased acceptance of fiscal loosening and an escalating battle between globalisation and protectionism.

The macro backdrop remains supportive for equities, but some caution is required in the near term as ‘US exceptionalism’ is under threat with Europe/China embarking on fiscal expansion, and market leadership is likely to change. Given this backdrop gold should continue to perform strongly, and we could see commodities pick up if China stimulates aggressively.

Core investment themes remain compelling, but as noted, they are evolving and we are following a barbell strategy of investing in mega caps in the US together with selected value/cyclical/smaller cap stocks globally.

We will continue to monitor global and local political developments and inflation trends to guide our investment strategy, ensuring alignment with our long-term outlook.

We trust you have enjoyed and benefited from this report and please do not hesitate to contact Orion Investment Managers at: info@orionim.biz should you have any questions or queries.

Sincerely,

Adrian Meager
Orion Investment Managers
Managing Director and Chief Investment Officer