Beware certainty in markets

Countless thousands of words have been written over the last six days about the investment implications of the new American President. The consensus seems to be it’s all over for bond proxies like REITs, infrastructure stocks, utilities and Telstra now the Trump reflationary trade is pushing bond yields higher and reducing the appeal of these stocks. The prospect of the world’s two largest economies, China and the US, simultaneously injecting infrastructure stimulus is indeed a powerful theme for industrial commodity prices, which have rallied. By design, our model portfolio has been on the right side of this trade with no exposure to the bond proxies. (VIEW LINK)