What the Fund Managers are Doing

One of the many surprises that has come along with a Donald Trump Presidency is that hedge and mutual fund managers are shifting their focus on what to include in their portfolios right now. It is expected that inflation will occur at a faster than normal pace now that Trump has won the election, and already we have seen stocks move upward at a faster than normal pace as a result of this. This is happening, in part, because fund managers believe that stocks are the better alternative over bonds. This is especially the case with mutual funds as they often turn to corporate and government bonds in order to hedge against losses when the stock market is more volatile than normal. Leading up to November 8th, that is exactly what we saw happen across every major index in the United States. And now, fund managers believe that with normalcy in the marketplace, they need to get well positioned for the next phase of growth. (more…)