If you’ve read these pages over the last few months, you’d know that one prevailing theme is to take the Trump phenomenon with a grain of salt. There is a lot of hysteria surrounding his entry into politics, and it’s the job of investors to separate the hysteria from the facts. And, according to a survey conducted by RBC Capital Markets, it would appear as though Wall Street has been taking our advice, or something like that.
Wall Street weighs in
Specifically, over 70 percent of investment professionals surveyed by RBC believe Donald Trump will be reelected as President of the United State. As simple a result as that is, what can be gleaned from it is considerable. First, that number, 70 percent, is considerably more than any presidential approval rating you can get your hands on, the highest of which usually has the president at 50 percent approval, if that.
So, what does this gap between investment professionals and lay-people mean? Well, it means that the investing world makes it their business to separate media hysteria from real-world fact. And, according to real-world facts, the investing world has had a much more positive view of Trump’s impact on investing, and the economy, than average people have.
The facts speak for themselves
And, if you look at what’s actually happened in Trump’s over two years in the White House, the investor class has been proven right, hasn’t it? Trump hasn’t made the world burn. He hasn’t destroyed the economy. Heck, he isn’t even guilty of Russian collusion despite undergoing one of the most massive investigations of presidential conduct in the history of humankind.
This doesn’t mean that investing professionals necessarily love Donald Trump. According to the same survey, they believe former Vice President Joe Biden will have the most positive impact on the world of investing among all the possible Democratic Party presidential candidates.
So, when it comes to being a discerning investor, it’s not about being caught up in media popularity contests. Instead, investors should always looks at the facts as impartially as possible. Remember, it’s about getting the best return on your investment dollars. It’s not about getting headlines in the media.
ASCEND GRP is an asset-management firm, with offices in Toronto, Richmond Hill, and New York, that services clients seeking investment opportunities worldwide.