FUM will grow strongly IMO not only because of inflows but also because US share prices have grown strongly in the last 6-7 weeks. I think this will continue and imagine what a 10-15% tax cut will do to the earnings of these Companies. I think more money will be flowing to the US markets through 2017 to reflect the fact the US economy doing so much better than almost everyone else at this moment.
I agree with you about the impact of the higher USD, I just believe this is more than offset by proposed tax cuts and the business friendly policies of Trump.
The other thing to remember is the economies of scale or leverage these fund managers have. Profits will rise significantly faster than FUM growth.
Anyway, you make some great points. I like your conservative outlook. I tend to be way too bullish with my views. Let's see how it pans out. I think if Trump renegs on his tax cut promises then it could get ugly for US stock valuations.
That's what I'll be looking at over the next few months - will Trump be able to push through his agenda or will he be stopped by his colleagues.
MFG Price at posting:
$24.44 Sentiment: Buy Disclosure: Held
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