Trump's budget will stimulate U.S. growth, Manulife manager predicts

Michael Mattioli expects consumer-related stocks to be among winners.

Sonita Horvitch 30 November, 2016 | 6:00PM

The U.S equity market is making new highs in what is a classic reflationary scenario in anticipation of the economic stimulus that is expected to be implemented by the new regime in the White House, says Michael Mattioli, managing director and portfolio manager at Manulife Asset Management (U.S.), LLC.

A member of the U.S. core value-equity team, Mattioli says that it is important to sift through president-elect Donald Trump's campaign promises to assess those which may indeed be translated into law and those that should be viewed as election rhetoric.

Mattioli considers that the federal budget-related items -- tax cuts, both personal and corporate, and increased fiscal spending -- "will likely get done." There will be a net stimulus to the U.S. economy, though the downside is a significant increase in federal government debt.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Affiliated Managers Group Inc56.15 USD-5.06
Amazon.com Inc1,907.70 USD-2.16
Apple Inc240.91 USD-5.26
Bank of America Corporation19.77 USD-6.88
Citigroup Inc38.51 USD-8.57
Facebook Inc A159.60 USD-4.32
JPMorgan Chase & Co84.36 USD-6.30
Polaris Industries Inc46.12 USD-4.22
T. Rowe Price Group Inc93.87 USD-3.87

About Author

Sonita Horvitch

Sonita Horvitch