Radio report: ‘Trump's election victory is just a flash in the pan on the stock markets – we are significantly underinvested in equities.’

Radio report: ‘Trump’s election victory is just a flash in the pan on the stock markets – we are significantly underinvested in equities.’

Börsenradio | Uwe Eilers, CEO of Frankfurter Vermögen, in a conversation with Peter Heinrich (Börsenradio) about the future President Donald Trump and the economic prospects during his presidency.

Donald Trump’s tax cut plans will initially boost the stock markets, but in the long term they could lead to a rise in national debt in the USA. Mr Eilers warns that sooner or later this will disappoint investors: ‘Because more bonds will then actually be thrown onto the market, interest rates will rise at the long end. Rising tariffs will also drive inflation straight up. In this scenario, I cannot imagine that equities will rise. On the contrary, they could fall significantly. Because interest rate hikes at both the short and long end are poison for equities, especially since companies would then have to refinance at significantly higher costs. – We are clearly underinvested in equities. At most half of the normal position, which we otherwise hold. And we also remain very, very cautious because most equities are still completely overpriced. In particular, large caps in the US and tech stocks overall. Therefore, we remain extremely cautious in our stance.’