Magellan founder, Hamish Douglass is cautiously optimistic about US investments despite the uncertainties generated by the Trump administration.
Addressing the inaugural Magellan Investor Gala Dinner attended by around 2000 advisers and their clients, Douglass acknowledged the uncertainty surrounding US investment in the context of the statements being made by US president, Donald Trump but said that, on balance, Magellan was cautiously optimistic.
He said a part of that cautious optimism was driven by the likelihood of Trump’s policies driving higher US corporate profits, a more positive regulatory environment and a stronger US dollar.
However in doing so, Douglass pointed to the likely negatives including social instability in the US, a difficult relationship with China and issues with respect to Europe.
Notwithstanding these factors, Douglass pointed to the level of Magellan’s exposure to the US, including 70 per cent of its exposure being to companies domiciled in the US with 55 per cent of underlying earnings being drawn from the US.
He compared this to Magellan’s exposures to China where direct exposures stood at around five per cent.
