US fiscal policy: opportunities amidst uncertainty

Donald Trump’s second presidential term continues to disrupt the US investment landscape. With policy specifics still evolving, investors must balance caution with opportunity. “While immediate market reactions often dominate headlines, it’s essential to recognise that meaningful policy changes take time to materialise,” says Justin White, portfolio manager at T. Rowe Price. Sectors like financials and small caps have surged on expectations of deregulation, while long-term bond yields reflect inflationary concerns. “A push to ‘run the economy hot’, combined with pressure on the Federal Reserve...