Investor confidence in Trump’s first year has been met and exceeded in some key areas in the US, but there is work to do globally.
Comparisons between research carried out in January 2018 with around 100 Global Institutional Investors* and a similar survey undertaken in early 2017 show that while US investors continue to support President Trump, global investors are only starting to gain confidence, a year on from his inauguration.
According to US investors, Mr Trump’s greatest success has been in creating a ‘Business friendly environment in the US’, with a rating of 87% (exceeding expectations by 8%), followed by an 84% rating for ‘Boosting the US economy’, (although a slightly higher 88% expected him to do this).
Mr Trump also exceeded the expectations of investors in his ability to benefit multinational companies overall – where the expectation was just 48% confidence, but in the most recent research he received a 61% rating of success (+13% higher).
In 2017, global respondents did not have the same confidence as their US colleagues: a mere 29% considered he was successful with ‘Promoting global economic stability’, which met expectations at the beginning of 2017. However, at the start of this year a surprising 33% considered he was successful at ‘Promoting global trade’, 14% higher than expected just before his inauguration in 2017.
Dan Healy, Head of Research at FTI Consulting commented:
“President Trump is considered to be successful by almost 9 in 10 global institutional investors (87%) for creating a business friendly environment in the US that is boosting the economy and in turn increasing employment. However, as he prepares to visit Davos for the World Economic Forum 2018, he is certainly not considered to be promoting global economic stability by 71% of global institutional investors. However, this meets their expectations as the same percent (71%) also had no confidence in him achieving this at the beginning of 2017.”
These opinions are put into perspective with US stock-performance figures on his first year:
*(with assets under management totalling over USD $6.8 trillion)
**(with assets under management totalling over USD$3 trillion)