We continue to expect a short term correction in the market within 2017 to follow the rally experienced in 2016. Long term growth, however, is projected if the Trump Administration can follow-through on the President-Elect’s fiscal policy proposals and infrastructure initiatives. In theory, his proposed guidelines could increase the bottom lines of companies throughout the US while his aggressive fiscal spending could help increase GDP. Though these proposed changes may help many corporations for 1-2 years, the Fed, as indicated in previous meetings, will meet this high spending with increased interest rates in the coming year. On a macroeconomic level, the combination of both aggressive fiscal policy and rising interest rates poses a unique investment opportunity in international companies. The basis for this opportunity is the expected appreciation of the USD against other major currencies. The USD is currently at a 14 year high and is expected to rise even higher. With this in mind, many companies that supply the US market with goods and services will see strength in their top line as these goods will become cheaper versus their domestic competitors. Another industry expected to grow is the travel industry as the more consumers are able to afford travel abroad. This in turn grows the income and visibility of international markets and companies. In the coming year, the investment team expects much more attention to international markets as foreign companies report better than expected top and bottom line growth.
In summary, and with potential long term effects still yet to be determined, there could be major consequences as companies begin to pay off debt in 2018 and 2019 that accumulated during the low interest rate periods. Furthermore, one of the most significant political threats to navigating this market in 2017 is not from any fiscal policy, but from the use of political rhetoric both here in the US and abroad. Regardless of party affiliation, the President-Elect’s antagonistic and imprudent use of social media sites like Twitter will continue to sway industries and specific companies at a moment’s notice.
DISCLAIMER: We only work with accredited investors and qualified purchasers that know at least one of the Managing Partners. This website is provided for informational purposes only. None of the information available on the website (the "Website Information") constitutes an offer to sell, or a solicitation of an offer to buy, any interest in any entity or other investment vehicle offered by Gold Sail Capital LLC or any of its affiliates (collectively, "Gold Sail"). Any such offer or solicitation will be made to accredited investors only by means of a final offering memorandum. The Website Information should not be deemed as a recommendation to buy or sell interests in any entity or security. Gold Sail cannot and does not guarantee the success of any investment. Past performance is not indicative of future results and no assurance can be made that profits will be achieved or that substantial losses will not be incurred. All investments involve risk and loss of capital. Gold Sail reserves the right to change, modify, add or remove portions of any content posted on the website at any time without notice and without liability. Our Terms, Disclosures, & Privacy Policy govern your use of our website; by using our website, you accept the Terms, Disclosures, & Privacy Policy in full. If you disagree with any part of the Terms, Disclosures, & Privacy Policy, then do not use our website.