In this video, Newton global income portfolio manager Jon Bell considers some of the forces shaping global equity markets 100 days into Donald Trump’s second tenure as US president.
Key points:
- We are moving from a disinflationary to an inflationary economy, driven by two global themes: big government and great power competition.
- Trump’s agenda, including tariffs and deglobalisation, supports this transition and marks the end of the era of free money and zero interest rates.
- Equity markets could experience a change in leadership, with growth stocks potentially giving way to income stocks, which are currently undervalued.
- High valuations and concentration risk, but recent catalysts such as DeepSeek and Liberation Day may drive a change in leadership.
- The portfolio is positioned to navigate this uncertain environment, with an overweight in healthcare, utilities, and consumer staples, and a strong yield-based discipline.
