Identifying equity winners and losers will become more 'nuanced'

Politics at the fore

At various points in time, equity markets are overwhelmingly driven by one of three key factors: company fundamentals, economics or the political backdrop.

While each bears significant influence, fundamentals tend to dominate for longer periods of time compared to economic or political drivers. We are currently in an unusual situation where politics is at the fore and influencing equity market returns and their potential direction in a meaningful way. Hargreaves challenges UK Equity Income sector with March launch The new US administration has the potential to fundamentally alter global corporate cost structures and in turn, profit margins. The US has proposed a border adjustment tax which seeks to make the US tax regime 'destination ...