Missed it? Watch the replay below
Our Industrials team, Jay Van Sciver and David Talbott, have spent much of the last couple of weeks traveling and speaking with investors.
Catch this special edition of Sector Spotlight and hear the key takeaways for their favorite long and short ideas. The topic of discussion was, "Trump Policy Expectations vs. Earnings Uncertainty | A Major Secular Risk."
Companies the Industrials team discussed included, Deere (DE), Wabtec (WAB), Textron (TXT) and more...
TOPICS INCLUDEd:
- Trump Policy Uncertainty: There is much less consensus on the impact of the Trump administration and a Republican Congress than we might have expected. While the first order effects of policy proposals can seem clear, investors are hesitant to forecast either implementation or its net impact.
- Defending Existing Views, Positions: Our sense is that investors have not moved very far in adjusting to a new policy environment. Some investors try to frame evolving policy through their existing positions.
- Investors Want New Longs, Not Shorts: Perhaps not wanting to miss out on a potential Trump cyclical upswing, few investors were interested in discussing new short ideas.
- Investors Will Care About 2017 Results As Policy Clarifies: As policy clarifies, earnings should come back into focus. Notions like investors ‘don’t care about 2017’ or will ‘look through the industrials cycle’ are misreading policy uncertainty trumping earnings uncertainty.
