Smart money moves: What top fund managers do after Trump's shocking comeback
JP Morganʼs dual-strategy fund shows how to handle post-election market shifts. Their mix of tech giants and value picks has beat the S&P 500 by 2% yearly since 2019
After Donald Trumpʼs surprise win last week investors face a tough choice: jump into US stocks or stay careful with their money. The marketʼs first response was good - not just big-tech went up but also banks and factory stocks
Current stock prices are way-up from eight years back: S&P 500 companies cost 22 times their earnings now (versus 16 times before). US bonds give 4.3% today; back then it was 2.7%. Jack Caffrey from JP Morgan points out: “We moved from thinking all shares are cheap to picking specific good companies“
The JP Morgan American fund uses a smart-split setup. Jonathan Simon and Caffrey pick 20 cheap but solid stocks; while Felise Agranoff and Eric Ghernati choose 20 growing companies. Their top-10 shows this mix-up strategy:
- Microsoft‚ Amazon‚ Nvidia‚ Meta and Apple (25% of money)
- Berkshire Hathaway‚ Loews‚ Capital One‚ Kinder Morgan‚ EOG Resources (13.5% of money)
The fundʼs growth-value split is now 55-45‚ which helped it make 17.2% yearly since Mar-19 (thats 2% better than S&P 500). Their quick style-switching let them ride tech-stock ups and dodge some downs when prices fell
The fund managers dont rush to conclusions about Trumpʼs effect on markets. During his last term tech-stocks did great while oil stocks went down - opposite of what many thought would happen. Even with todays high prices this fund keeps beating the market
