Sam Dickie: Fisher Funds expert on what investors can take away from Donald Trump's win one week on

US investors are still riding high one week after Donald Trump won the US presidency - but what can they expect long-term?

Dow, and S&P, among others are experiencing rapid growth, but experts wonder how long this can last.

Fisher Funds expert Sam Dickie explains further.

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Episode Transcript

Speaker 1 (00:00):
Ever, dup c Ellen right, So to the Trump trading. Now,
these things are still writing. The Trump trades are still
riding high. A week on from the US election. Some
of the initial euphoria show signs of wearing off. A
question of course, is now how sustainable all of the
stuff is? And Sam Dickey from Fisher Funds is with
us right now. Sam, hello to you.

Speaker 2 (00:18):
Hello.

Speaker 1 (00:19):
So Sam, run me through who the in your eyes,
initially who the winners and losers of the Trump's trades were.

Speaker 2 (00:25):
Yeah, we're not We're not through Rinston Trump yet, I hope,
but the winners initially with the US in general. So
it does feel like there's an enormous sucking sound on
equity markets around the world, and all this money is
flown out of global equity markets into the US equity
So now U s equities are up five percent and
Europe's down two in China found five, so that's sort

(00:45):
of seven to ten percent out performance in a few
days is pretty rare. And then the US dollars its
been a clear winner, appreciating against all comers really, and
then within the US it's kind of domestic facing, make
America great. US sectors were the initial winners. So steel
companies up thirteen percent, US trucking companies up ten. Of course,
big banks up ten percent, but perceived losers still are

(01:07):
bonds or a loser. People are selling bonds and sold
the companies was at abound ten or fifteen percent.

Speaker 1 (01:13):
How sustainable do you think these moves are?

Speaker 2 (01:16):
Well? I mean if we sort of pick on say
four of those asset classes, and we start with steel stocks,
because they are super interesting. They did rep high initially,
so everyone expected the first tariff he would throw on
China will be steel like in twenty sixteen, twenty seventeen. Now,
but what's super interesting is the steel stocks are now
back below where they were before Noald Trump was elected.

(01:38):
And what's happening there is, of course, is there's unintended
consequences of all of this. First and foremost by the
way he may not put these tariffs on. Secondly, if
you put a tariff on Chinese steel steel exports, that
drives up you u as steel prices. And I don't
think anyone in the US is buying stealers suddenly, say ten, fifteen,
twenty percent wealthyer and can afford that and see only

(02:00):
kind of what goes around comes around in any anti
China policy which impacts the Chinese economy, You've got to
remember that the biggest buyer of steel globally is China.
They have ten times the demand that the US have
some of these reflective second round impacts. And I guess
if we yes, no, no, no, no, I'm just going to stay.

(02:23):
If you go to the I mean US banks for
exhumble giant banks like JP Morgan up ten percent, talking
less regulation. So for everyone you regulation your acts ten
But if you go to the sort of slightly less
fundamental end of the spectrum, you know, Tesla, baskets of
unprofitable tech companies and Bitcoin all up almost exactly the
same amount, say twenty five to thirty percent, And that

(02:43):
tells me there's a lot of retail animal spirits at play.
So recall he was super pro bitcoin. But what I
find most remarkable of the Tesla move so Trump has
made the lelon. But that's a very valuable friendship. It's
worth quarter of a trillion dollars to Tesla's market cap.

Speaker 1 (03:00):
Yeah, totally. Do you think the dusters, I mean, it's
it's probably too early for the dust to completely have settled.

Speaker 2 (03:04):
Right, I think so yes, we'll see which tariffy rolls
out in which order. But I would wouldn't so much caution,
but encourage investors to look at second and third round impacts.
We think that still Stock example is a great example
that these things don't just happen in a vacuum. There
are unintended consequences. And the other thing to remember is,

(03:26):
you know, interest rates moving higher and ant anticipation of
a boost to you if economic growth. If that doesn't happen,
I will shift there, whether it be interest rates falling
or equities falling.

Speaker 1 (03:38):
Sam, I don't want to, I mean I want you
to tell me obviously what investors should take away from this,
But would one of the things that investors wouldn't one
of the things be that you actually can't predict what
Donald Trump is going to do, and you'd be a
fool to try.

Speaker 2 (03:51):
Yeah, that's rather again, like like we said last week,
I mean, back in twenty sixteen, everyone was convinced he
wouldn't get in, and then in the unlikely event he did,
stop my this would fall very sharply. Well, they were
wrong on both the cost last time, and here we
go again. Stop markets are predicting what he's going to do,
and he hadn't even really got to see it under
the desk, so let's wait and see.

Speaker 1 (04:10):
Yeah too, right, Hey Sam, thank you for being a
cool head in all of this. Sam, Dickie Andficier funds
for more from Hither Duplessy Alan Drive.

Speaker 2 (04:19):
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