Trump trade rotation: Why US businesses can still flourish

Retail and autos particularly affected

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Sherlock: "The macroeconomic picture remains constructive for US companies"
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Sherlock: "The macroeconomic picture remains constructive for US companies"

Year-to-date the Russell 2500, the US small and mid-cap index, has returned 2.8%.

Digging deeper, there has been a rotation out of some of the beneficiaries of the so-called "Trump trade" (banks, industrials) into parts of the market (healthcare, technology) which relatively underperformed in the post-election euphoria of the President's pro-growth policies.  This rotation reflected the weaker economic data coming through in February and March and a realisation that many of Trump's policies are controversial and will likely require compromise.  US equity funds see biggest outflows since Brexit At the same time, an improving European economy and Emmanuel Macron's...

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