Investors underwhelmed by lack of policy detail in Trump speech

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Investors have been left wanting once again, with initial reaction to President Donald Trump’s address to congress focused on the lack of policy detail in the speech and the US president’s failure to provide a clear timeline for implementation of key economic plans.

The dollar index and S&P 500 e-mini futures pared gains they had made in the run up to the speech. Oil is up, gold is down and Treasury yields have edged lower.

Here are just a few investor comments:

Paul Christopher, head global market strategist for Wells Fargo Investment Institute

I thought he made an obvious effort to sound more presidential. It would have been a good inauguration speech but it wasn’t what investors are looking for from him right now.

Mark Heppenstall, chief investment officer at Penn Mutual Asset Management

One of his best performances as a speaker/leader with a very optimistic tone and highly emotional stories.

Infrastructure spending proposal took top billing among economic policies in the address as he was trying to find common ground with Democrats.

Other economic policies: not enough specifics to shed light on what are his administration’s top priorities – nothing on the border adjustment tax.

David Donabedian, chief investment officer at Atlantic Trust

For people looking for specific policy proposals, they might be disappointed. Basically we heard the president pounding the table on the priorities he has outlined. Markets will take away from this that the assumptions that are already built into the market are on course.

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