Trump Policy as a Driver for the Economy and Markets

The political agenda of U.S. President Donald Trump could stimulate the economy and provide positive momentum for public and private markets. This is predicted by Jenny Johnson, CEO of Franklin Templeton Investments, in a conversation with Bloomberg TV at the World Economic Forum in Davos. Measures such as deregulation, infrastructure investments, and tax cuts are interpreted by Johnson as potential growth factors. Franklin Templeton currently manages assets worth approximately $1.7 trillion. In regard to Trump's negotiation style, such as proposed tariffs against Mexico and Canada, Johnson is confident. She sees Trump's method of initially taking strong positions that later become more practicable as a strategic advantage. Furthermore, the impact of Trump's policies on the interest rate policy of the U.S. Federal Reserve is interesting. Johnson expects a phase of waiting to analyze the economic consequences of Trump's decisions. She predicts a yield of 5% for 10-year U.S. Treasury bonds by the end of the year. Cryptocurrencies are also receiving attention in the current political environment. Johnson hopes for regulatory clarity that could lead to a convergence of traditional finance and the crypto sector. In the area of private markets, Johnson sees opportunities in the secondary market of private equity and real estate loans. Particularly, regional banks in the U.S. seem less active here, providing room for specialized private lenders.