Jupiter's Bezalel: Mind the 'Trump Gap'

Bond investors must exercise caution amid political uncertainty

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Jupiter's Bezalel: Mind the 'Trump Gap'

Ariel Bezalel, head of strategy, fixed income at Jupiter, explains his caution on the Trump administration's ability to deliver fiscal reforms, and why he has increased the duration in his funds for the first time since cutting it last summer.

Following the recent positive economic data (albeit around mostly soft indicators such as consumer confidence surveys) and the continuation of the Trump reflation trade, it might seem that the US is on a path of unstoppable growth. However, my team and I believe it is important to remain conscious of too much hope being priced in to risk assets. As expected, the Federal Reserve raised the Fed funds rate by 0.25% to a range of 0.75%-1% on 15 March. But the Fed's statement struck a more dovish tone than anticipated by the markets, reducing the number of further expected rate hikes th...

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