This week marked 100 days of Donald Trump’s second term of presidency. Some will suggest that no president has achieved so much in so little time, whilst others might suggest that no president has so quickly damaged the image of the United States abroad. It might also be worth considering that according to one source, Trump appears to have played golf on at least 20 of these days.
The tradition of assessing a president’s performance after 100 days began with Franklin D Roosevelt, whose radical reforms during the Great Depression set a historic benchmark. He was a president who took immediate and bold action to deal with national crises but despite its historical significance, the 100-day milestone is more symbolic than predictive, and often strongly shaped by the accompanying media commentary.
In a recent interview with Fox News, Trump highlighted his successful focus on resolving the US border crisis, governmental reforms, and economic policies including the implementation of tariffs to correct long-standing trade imbalances. Whether or not this will bring long-term success for investors is unknown but as I write, the S&P500 has fallen sharply since his inauguration, marking the worst stock market start for a U.S president in over 50 years.
Trump’s unpredictability will likely continue to affect stock markets for the foreseeable future and fears remain that the US economy, still the world’s biggest, is headed towards a recession with shipping volumes between the US and China in particular falling sharply. The popular idiom: ‘when America sneezes, the world catches a cold’ implies that economic events in the US often have a widespread impact on other countries, and it would take a brave person to have confidence that it’s any different this time around.
The value of securities and their income can fall as well as rise. Past performance should not be seen as an indication of future results. All views expressed are those of the author and should not be considered a recommendation or solicitation to buy or sell any products or securities.
