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Staying grounded Insync Fund Managers January 2025 Many equity markets are trading close to their highest levels in 25 years. Combined with exceedingly high expectations of Trump's administration delivering significant economic outcomes, 2025 may prove turbulent. His ambitious agenda of ending inflation, slashing taxes, widespread deregulation, and boosting economic growth presents significant challenges. Structural headwinds with entrenched programs (e.g. Social Security, Medicare, Medicaid) and defense spending, limits fiscal flexibility. They account for nearly half of the US federal budget leaving little room to meet ambitious spending cut targets without substantial political compromise. Political divergences on key issues such as immigration and healthcare policy will challenge consensus action. Even if alignment occurs, navigating Congress's intricate and slow-moving legislative processes poses additional hurdles. Historically these dynamics have stymied meaningful reforms, and despite House majorities this latest situation is unlikely to be an exception. For investors, prioritising long-term structural growth outcomes over near-term speculative predictions is less risky. Companies aligned with global megatrends (secular growth drivers) that also offer sustainable returns on invested capital, are well positioned to weather near term price volatility. Thus, Insync investors aren't highly exposed to the risky task of macro forecasting because we select businesses with resilient fundamentals and competitive advantages. Funds operated by this manager: Insync Global Capital Aware Fund, Insync Global Quality Equity Fund Disclaimer |
