Special Report:


The election and you

What the new administration may mean for the economy, the markets, and investors.

Our experts weigh in on the new administration's potential policies, and their impact on the economy and markets.

The first 100 days: What to watch

  • Expect the early days of the administration to focus on confirmations, deregulation, a budget, and repeal of the Affordable Care Act.
  • The market has rallied on expectations of accelerating growth and business-friendly policy. But there is considerable uncertainty.
  • Historically, the presidential cycle in the stock market has seen positive performance from the election to the late spring.

Read the full article


Related articles:

Consider global stocks and inflation-resistant assets. Avoid big asset allocation bets.

Trade risks offset by global reacceleration

  • The new administration’s more confrontational approach to trade raises protectionist risks for the global economy and financial markets.
  • An outright trade war between the U.S. and China could be devastating, but more nuanced policy changes would have varying impacts across countries, sectors, and companies.
  • Assuming no trade war with China, an increasingly synchronized global economic upturn is likely to offset negatives from rising protectionism.
  • Relative to U.S. stocks, international equities offer cheaper valuations, currencies that are generally undervalued relative to the U.S. dollar, and some emerging markets that are in more attractive earlier phases of the business cycle.

Read the full article


Related articles:

As the new administration takes over, some potential changes could impact stocks.

Washington and sectors: What to watch

  • Health care: While there is a lot of discussion of the Affordable Care Act, the more immediate concern for investors may be drug pricing.
  • Materials, industrials, and defense: These sectors may benefit from the potential reform of corporate taxes and increased government spending.
  • Financials: Bank stocks have rallied on higher interest rates, hope for accelerated economic growth, and the potential for deregulation.
  • Energy: Policy announcements could ease concerns about regulation, while tax reform could have a big impact on the sector.

Read the full article


Related articles:

Economic growth and inflation look likely to rise. Stay diversified. Consider international markets.

The economy: uncertainty and optimism
  • China's economic recovery and potential Trump policies may boost economic growth and inflation.
  • The U.S. economy is between the mid- and late cycle.
  • Keep a diversified portfolio with an appropriate mix of stocks and bonds.

Read the full article


Related articles:

Subscribe to Fidelity Viewpoints®.


Get our latest thinking on
the markets and your money.