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By Angel Agudo, Fidelity International *
US equities have rebounded strongly post the US elections as investors became optimistic about the pro-growth policies supported by Donald Trump. US economic growth could increase further, supported by increased fiscal spending, as well as tax and regulatory reform policies. Infrastructure spending as a percentage of GDP is near multi decade lows and some of this potential recovery seems to have been discounted in the valuation for construction materials and other aggregate companies. Defence is another area where government spending is most likely to increase. In particular, I am positive on short-cycle defence companies which typically provide comparatively smaller defence-related products and services.
Tax...
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