Goldman: “All Our Clients Are Confused And Unsettled”

Markets “bought” the election. Now the question is whether they will sell the inauguration. That is the take from the latest weekly letter by Goldman’s chief strategist David Kostin, who says that “investor angst is high.” Kostin then explains the one-word reason behind such confusion and angst – take a wild guess what it is. Which is ironic, because while on one hand investors and strategist are losing sleep over Trump policy uncertainty, on the other hand, every single one of them is convinced that Trump will unleash massive stimulatory tax cuts and hundreds of billions in fiscal stimulus with effectively no risk.
Go figure.
FInally, the Goldman strategist reveals what Goldman believes is the best investing strategy for a Trump presidency (which means most investors may want to do the opposite).
Here is the full note:
Conversations we are having with clients: An investing strategy for a Trump Presidency
“I, Donald John Trump, do solemnly swear that I will faithfully execute the office of President of the United States, and will to the best of my ability, preserve, protect, and defend the Constitution of the United States.’ With those words, the New York businessman became at noon today President of the United States of America, completing one of the most improbable election campaigns in the country’s 240-year history.
‘Unsettled’ is our best description of fund managers’ mindset as the new administration takes office. During an extensive series of client meetings in the US, Europe and Asia, it became apparent that investors are confused about how to best position portfolios under a Trump presidency.

This post was published at Zero Hedge on Jan 22, 2017.