How fund managers traded after Trump victory

Buying S&P 500 shares and gold were among the most popular trades in the aftermath of the US election, according to a survey.

The research of 114 global fund managers by Bank of America Merrill Lynch (BoAML) also found that only 2% of managers planned to buy EU equities and 4% planned to buy emerging market equities as ‘risk-off’ sentiment grew.

The three most popular trades were:

 ·        Buy S&P 500 (30%)

 ·        Buy gold/sell risky assets (27%)

 ·        Buy US dollar (10%)

There were risk-on moves in the 36 hours after the election, but BoAML described these as tactical and not fundamental in nature.

Also, 59% of investors said the Donald Trump victory would not affect their cash holdings and 46% said they thought Trump was most likely to pass a tax repatriation and infrastructure spending bill in first 100 days.

©2016 funds europe

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