The day before President Trump was sworn into the Oval Office, I highlighted the potential impacts his presidency may have on small and medium businesses (SMBs).
- Investors will turn to the private market
- Deregulation will fuel community bank recovery
- Investment will flow to private companies in the American heartland
- Traditional sources of funding for SMBs will not keep up with demand
We have seen deregulation and investment in the private market undermine early guesses of what the ‘new normal‘ is. Instead, active investors who correctly interpret the impact of the Trump administration’s tax cuts and deregulation are seeing outsized returns in private companies. While this is no easy task, it’s proving to be ever more difficult to get significant returns in public markets.