America has voted - Gutmann is well positioned

Donald Trump becomes U.S. President for the second time. Gutmann Portfolio Management benefits from the positive market reaction.

No investor can avoid the US financial markets. The majority of our selected stocks are listed on Wall Street. Leading up to the presidential election, we carefully analyzed which securities could benefit from the election outcome in the long term and which could suffer as a result. Our aim is not to take extreme positions.

In late October, we took some profits in our equity positions. And used this opportunity to adjust the allocation of themes and stocks. 

We increased our weighting in our core strategy in equities, placing greater emphasis on digitalization. Stocks in this segment are currently rallying on the prospect of further deregulation under President Trump.

Overall market sentiment is positive, bolstered by the Republican majorities in both the Senate and House, which will facilitate the implementation of tax cuts. 

However, we remain focused beyond the initial market optimism. The prospect of tariffs and potential geopolitical uncertainties could hit individual sectors hard. Today’s market movements illustrate this dynamic: the Chinese stock market was down today, while Japan closed in positive territory. This is in line with our positioning. We are not invested in China but hold a significant position in Japan. 

The US equity market plays the pivotal role in our Gutmann portfolio management. This positioning is also proving advantageous in the wake of the election. A strong US dollar is also contributing to the positive development.

For our portfolio management clients, the key takeaway is this: The portfolios are balanced and well-diversified across both themes and individual securities. 

For any questions or to discuss your individual investments, please contact your relationship manager.