Stock rally in recent months driven by global economy, not Trump: Robeco CIO
By Tomo Uetake
TOKYO (Reuters) - A rally in global stock markets in the past few months is being driven more by improving economic fundamentals than by expectations of more U.S. fiscal stimulus under President-elect Donald Trump, a chief investment officer of Dutch asset management firm Robeco said.
To the contrary, uncertainty over Trump's economic policies is the biggest risk for markets this year, Lukas Daalder, CIO in charge of multi-asset strategies, told Reuters in Tokyo.
Ahead of Trump's inauguration on Friday, Daalder said Robeco has brought its positions to almost completely neutral, and will look to build fresh investment strategies after the new administration takes shape.
"Normally we have quite big exposures. But currently, if you look at the currencies, we are sort of hands off. Basically since the election, the only trade that we currently still have outstanding is a short position in the yen versus the dollar JPY=," he said in an interview late on Tuesday.
The U.S. S&P 500 Index .SPX has risen 5.3 percent since the Nov. 8 presidential election, while the MSCI ACWI .MIWD00000PUS, a gauge of the world's share markets, has gained 3.4 percent.
Many market players have attributed the strong performance to expectations that Trump will swiftly follow through on campaign pledges to cut taxes, spend more on infrastructure and push for deregulation.
While Daalder does not deny that such expectations have played a role, he thinks improving economic fundamentals have been the real driver of share prices worldwide.
"Most people call it the 'Trump rally'. Partly, it is but if you look at the underlining macro data, they have been on the up since September already," he said. Continued...