US sectors to profit from Trump win

Dylan Ball, portfolio manager at Templeton Global Equity Group, said: “Growth and quality stocks will suffer less as investors hide out in technology and consumer staple sectors.”

He also said the US equity market might lose out less than other regions in global equities.

Despite this, there is a general consensus that the US equity and fixed income markets could be hit hard by a “wild card” president, with some fund managers predicting a material downturn in markets.

But Tom Carroll, investment director at Sanlam Four, said he had expected the initial sell-off in US equities to be more violent.

“The S&P 500 was down around 2 per cent, which is not that substantial when you look at the volatility over the past two years.

“Trump is on the whole pro-growth, whether that is in deregulation, infrastructure spending, or cutting taxes; which in the medium-term I would anticipate would be good for equities.”

Mr Carroll said we could see a breakdown in correlation between equities and bonds, as shares move up and bond yields shift down.

On the whole, he said Mr Trump could be positive for US shares, adding his team has been looking to increase equity weightings.