First of Trump’s big promises fails to materialise as health bill is withdrawn

Published 27-MAR-2017 11:57 A.M.

|

3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

US investors will start the week in nervous fashion after the worst was confirmed towards the end of trading on Friday as the Trump administration had to withdraw its proposed healthcare reforms after determining that they did not have enough votes from their own party to pass the bill.

This was the litmus test for President Trump. The health bill is the only real ‘President’s Promises Score Card’ item to date, and Trump’s failure to deliver is likely to cast doubt over other election promises, including ground-breaking fiscal reform and economic policies which were to generate growth, provide employment opportunities and stimulate public, business and consumer spending and investment.

For the first time Trump is acknowledging the need for bipartisan support in order to deliver on the promises he made. Working as a team and forging conciliatory agreements has not been one of Trump’s strengths in the past, either in politics or in business.

Trump arguably achieved the populist vote because many of his supporters felt that he was the ‘can do’ guy who could get things done without political interference.

Those voters are now faced with the cold hard facts that like every other President, Trump is just a mere mortal who will have to navigate the usual challenges that come with pushing through legislation.

However, in his short time in the White House Trump has clearly demonstrated a ‘my way or the highway’ approach, bringing into question whether he will be able to develop the skills required to negotiate agreements rather than just sign executive orders.

Global markets yet to show their reaction to failed health bill

Given this news broke towards the end of trading on Wall Street and is yet to be fully digested the circa 60 point fall in the Dow could be the thin edge of the wedge.

Similarly, European markets were closed before the news broke. Consequently, the FTSE 100 could come under pressure on Monday, particularly given that it was only a late rally that left the index just four points shy of the previous day’s close of 7340 points.

Markets in mainland Europe were mixed with the DAX up 0.2% and the Paris CAC 40 off 0.2%.

On the commodities front, oil finished the week on a positive note, pulling back from circa US$47.50 per barrel to inch above US$48 per barrel.

Iron ore came off slightly, closing at approximately US$85 per tonne.

After hitting an intraday high of US$1255 per ounce, gold fell sharply towards the end of trading to close at US$1246 per ounce. However, the precious metal still notched up a week on week gain of circa 1.4%, and Friday’s intraday high represented a peak for the week, and was just a touch off the highest closing price in 2017 of US$1257 per ounce.

Base metals generally trended lower with nickel hit hardest, finishing the week at US$4.44 per pound.

Copper only came off marginally to close at US$2.61 per pound.

Zinc was the only metal to gain ground as it increased 0.6% to close the week at US$1.27 per pound, remaining in relatively close proximity to the psychological US$1.30 per pound mark.

It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X