In his post-election update on the tactical asset allocations of the Alpha multi-asset portfolios over the prior month, my colleague James Norrington pointed out that the underlying model is predicated on “rules-based protective momentum”, meaning that human biases and heuristics are removed from the equation. But in the wake of the election result, these aspects of the world of behavioural finance are certainly on display.
President-elect Donald Trump has wasted no time in trotting out prospective cabinet appointees, one of whom could force a rethink in terms of portfolio allocations, although not in the way that media reports would have us imagine.
Pending Senate approval, Robert F Kennedy Jr is to be placed in charge of America’s three healthcare agencies – the CDC, FDA and the NIH – a move guaranteed to galvanise the Washington lobbying networks that support the US food and pharmaceutical industries on Capitol Hill.