Archived material may contain dated performance, risk and other information. Current performance may be lower or higher than the performance quoted in the archived material. For the most recent month-end fund performance information visit www.calamos.com. Archived material may contain dated opinions and estimates based on our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions at the time of publishing. We believed the information provided here was reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value and return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance reflected at NAV does not include the Fund’s maximum front-end sales load. Had it been included, the Fund’s return would have been lower.

Archived on July 17, 2019

Don’t Forget: The U.S. Market and Economy Are Resilient

John P. Calamos, Sr.

Donald Trump’s election has come as a surprise to many, even in this neck-and-neck, back-and-forth campaign. While no one could guarantee the outcome of the election before the ballots were counted, it was far easier to predict the volatility that we’ve seen since last night.

Markets hate uncertainty, so what we are seeing now comes as no surprise. However, it’s important to keep a long-term perspective and remember that the markets are tremendously resilient. Just a few months ago, markets were roiled immediately following the Brexit referendum, only to come back strong within just a few days. Ultimately, fundamentals matter, and as always, that’s what our investment teams are focused on—fundamentals.

In regard to the economy, Donald Trump’s victory also echoes Brexit, and speaks to a widespread desire for change. It is my hope that the Trump administration will focus on developing fiscal policies that incentivize entrepreneurship, private sector growth and taking responsible risks with capital.

What would more effective fiscal policy look like? In my view, it would include reasonable taxation and a sensible level of regulation—clear and simple rules that allow for fair play. Within the U.S. economy, we particularly need more fiscal policy that encourages capital to flow from banks to small businesses. As I’ve discussed in past posts, small businesses are a vital engine of job growth—so policies that support this segment of the economy can have a real impact on overall economic growth.

Looking globally, we can’t lose sight of the saying, “capital goes to where it is treated best.” The United States’ relationships with its trade partners and its approach to multi-national companies have many facets and must be evaluated accordingly. I encourage President-Elect Trump and Congress to continue to recognize that we are stakeholders in a global economy.

As market participants work to identify the winners and losers in this new chapter of American politics, we must be prepared for volatility spikes. This may extend over a period of many months, as the Trump administration begins to shape its policies.

While markets haven’t been in this exact place before, they’ve navigated many unknowns to climb the wall of worry. As the Greek philosopher Heraclitus said, “change is the only constant in life.” As an investor, I would add that this change constantly creates opportunities.




For related resources, see:
Volatility Opportunity Guide



    The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice.

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    Archived material may contain dated performance, risk and other information. Current performance may be lower or higher than the performance quoted in the archived material. For the most recent month-end performance information, please CLICK HERE. Archived material may contain dated opinions and estimates based on our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions at the time of publishing. We believed the information provided here was reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

    Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value and return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance reflected at NAV does not include the Fund’s maximum front-end sales load. Had it been included, the Fund’s return would have been lower. For the most recent month-end fund performance information visit www.calamos.com.