He said: “We remain cautious on what I am calling the “Trump gap”, that is, the scope for disappointment between now and when Trump delivers his policies.
“Firstly, we think it is highly unlikely that his trillion-dollar infrastructure spending plan will successfully pass through Congress without being watered down.
“There are also indications that his tax reforms will be pushed back to next year.”
He added US banks seem to be tightening lending, a key threat to growing growth.
So where do investors turn?
Bezalel, as a fixed income manager, has opted for US treasuries over equities which he sees as offering value again.
He said his team had recently extended duration in portfolios from one year to three years to counter the “potential scope of disappointment in the US”.
However, Andrew Merricks, of Skerritts Investment Management, has thrown his hat into the European equities ring believing the apparent threat of French and German elections were something of a “red herring”.
