Best and Worst US sectors during Trump’s first 100 days
By Kristen McGachey, 26 Apr 17
Trump’s first 100 days in office have been jam packed with outrageous tweets, ‘alternative facts,’ a failed healthcare bill and foreign policy blunders. But, what were the best and worst performing US sectors during Trump’s first 100 days?
Ironically, the sector that Trumped talked up the most on the campaign trail, and has made some of the most controversial decisions regarding during his first 100 days, was the weakest performer over the period.
Despite stuffing his cabinet with something names in the oil industry, like ex-Ceo of Exxon Mobil Rex Tillerson, and signing off on pro-energy executive orders like the construction of the Keystone Pipeline, the S&P 500’s oil & gas segment has yielded negative total returns of 11.29.
There’s a simple explanation for this outcome, said Canaccord’s Perera. As oil production in the US ramps up, prices go down.
“His impact has been more on the balance of trade of the US not having such a big energy deficit. But from the point of view of the energy companies themselves, I’m not sure they’ve benefited from deregulation.”
And with other countries reticent to limit their levels of production, US energy self-sufficiency “will likely keep global prices capped,” added Brooks Macdonald investment committee director Edward Park.
“We note that investors are questioning the OPEC cartel’s ability to support prices through production cuts, while global oil inventories continue to expand,” he said.
Tags: Donald Trump | Investment Strategy | US
