U.S. investors brace for mounting political risks as they decode Trump Reuters – WBNews

FILE PHOTO — A screen shows the Dow Jones Industrial Average over the 20,000 mark following the closing bell on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 25, 2017. REUTERS/Brendan McDermid/File Photo NEW YORK Barry James built up his $4 billion mutual fund largely by studying balance sheets, earnings and market share. In the last few weeks, however, he has realized that he must look at a new force in the market: U.S. President Donald Trump. Trump’s unpredictable governing style and stated desire to renegotiate trade agreements and punish companies that seek out lower-cost forms of labor are upending the classic notion of fundamental investing, said James, who manages the James Balanced Golden Rainbow fund. As a result, he said, his Xenia, Ohio firm is broadening the market research it follows. He is also moving more of his money into bonds and bracing for a significant decline in the U.S. stock market, just a few months after making a big bet on equities the day after the Nov. 8 presidential election. “We’re vulnerable to shocks,” he said, “and we’ve got a shocker in the White House.” With U.S. equities breaking record highs, other investors who have long shunned big-picture trends say they also are paying more attention to the effect of politics on asset prices, and that the high market valuation sets the scene for a steep sell-off. Fund managers are not just focusing on whatever company Trump mentions in his latest tweet….more detail