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GMO's Inker Says Trump Presidency Could Really 'Damage' Economy

GMO portfolio manager Ben Inker talks to GlobeSt.com sister publication, ALM's ThinkAdvisor, about the market risk of a Trump presidency, Brexit and a stock bubble on the not-so-distant horizon.

By Natalie Dolce | nataliedolce | | Updated on July 27, 2016
Some of the things Trump has said "would be really scary," Inker says. (Photo: AP) Some of the things Trump has said “would be really scary,” Inker says. (Photo: AP)
A Donald Trump presidency could profoundly hurt the American economy, according to Ben Inker of GMO, the global investment firm co-founded by Jeremy Grantham , a celebrated market-bubble forecaster. Though Inker’s name isn’t nearly as well-known, as portfolio manager and co-head of the firm’s asset allocation team he is the person in charge of managing GMO’s $94 billion in client assets. In a lengthy interview with GlobeSt.com sister publication, ALM’s ThinkAdvisor, Inker, who came to GMO right after graduating from Yale University 24 years ago, talks about the huge risk inherent in a Trump election, a stock market bubble on the not-so-distant horizon, what could easily trigger the next U.S. financial crisis, the impact of Brexit, and emerging markets, among other issues critical to investors and advisors. Inker, 45, is responsible for allocations of GMO’s multi-asset portfolios and portfolios that invest across equity regions. Clients are chiefly sophisticated institutional investors. For retail investors, the firm is subadvisor for two Wells Fargo funds: the Wells Fargo Asset Allocation Fund ( EAAFX ) and the Wells Fargo Absolute Return Fund ( WARAX ), both of which Inker manages. According to Inker, “A government can manage to destroy an economy if it so chooses, and it’s possible that a sufficiently ill-advised set of policies in the US could do profound damage. We now have a candidate for president who is capable of that: It’s very hard to know what a Trump presidency would be like, but some of the things he has said would be really scary. It’s possible that a Trump election would be the exception to the rule that it doesn’t much matter who is U.S. president from an investment standpoint.” Click here to read the full interview at Thinkadvisor.com.

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