Edelman Smithfield Poll Finds Investors Confident Economy Will Grow Over the Next Two Years

The overwhelming majority of U.S. institutional investors believe President-elect Donald Trump will strengthen the U.S. economy, according to a new pulse survey released today by Edelman Smithfield.

• 80% of respondents have a good deal, if not complete, confidence in Trump to grow the U.S. economy.
• 91% of institutional investors are optimistic that a Trump White House will enable them to achieve target returns over the next two years, with 72% considering increasing their investments.
• Close to half (48%) of those surveyed are also considering adding protections, including hedging, as they adjust portfolios for the new administration.

“Professional investors clearly have confidence in President Trump’s ability to grow the U.S. economy,” said Katie Spring, U.S. President of Edelman Smithfield. “Despite uncertainty surrounding Trump’s trade policies, they are confident and see the next two years as a period of growth and are ready to move their money off the sidelines.”

Institutional investors anticipate meaningful adjustments to their portfolios as the Trump administration takes shape.

• Nearly half (45%) of institutional investors are considering adjusting their sector allocations. Finance (62%) and real estate/CRE (57%) are the top two investment areas predicted to provide the greatest opportunities over the next two years.
• Industrials (36%) and Oil and Gas (35%) closely followed as anticipated opportunities for investment under a Trump Administration.

“Our survey shows investors see new opportunities in traditionally highly regulated sectors,” said Sean Neary, head of Edelman Smithfield’s Washington office. “Market players would be wise to develop a strategy to navigate obstacles and take advantage of the opportunities ahead.”

Other findings in the survey include:

• 41% of investors surveyed are considering increasing their cash holdings
• Adjusting sector allocations is receiving virtually the same consideration among investors, whether they are completely confident in President Trump or not.

The Edelman Smithfield pulse survey of 200 U.S. institutional investors was managed by Arlington, Va.- based Wakefield Research, and conducted the week following the election.

Edelman Smithfield is a global communications boutique that specializes in financial markets and strategic situations. It is a top advisor for companies across industries in M&A, IPOs, investor relations, restructuring, and shareholder activism defense, and an emerging advisor for ESG and sustainability related matters. Edelman Smithfield is also a trusted partner for financial services companies as they seek to help clients solve complex issues, build trust, and enhance valuation.

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