Quick shot: Navigating President Trump’s second term

On Monday, Donald J. Trump took the oath as the 47th President of the United States and he kicked off his second term with a flurry of executive orders. In historic fashion, Trump signed dozens of orders on Day 1, far exceeding the one executive order he signed on Day 1 in 2017. These orders, covering key areas like immigration, energy policy and government efficiency, set the stage for the new administration’s policy priorities.

For investors, it's essential to keep in mind that, despite the excitement and uncertainty, equity markets tend to anchor themselves in economic fundamentals over the long term. Right now, the U.S. economy is sailing smoothly, buoyed by strong demand and a robust labor market, which are promising signs for corporate earnings. We see U.S. corporate earnings growing by about 12% in 2025 and expect the equity market to end the year higher. We prefer sectors like financials, industrials, technology and utilities, which could benefit from the expanding impact of artificial intelligence and a resurgence in dealmaking. In the fixed income space, we continue to see potential value in go-anywhere fixed income funds that can capitalize on global market dislocations and believe that core bonds could provide support to portfolios during periods of economic slowdown.

The heightened anticipation of the new administration underscores the importance of diversifying across asset classes and geographies. This approach helps create resilient portfolios that can navigate various market conditions and can pursue a wider range of investment opportunities.

All market and economic data as of 01/21/25 are sourced from Bloomberg Finance L.P. and FactSet unless otherwise stated.

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