US Election – The results are in!

By Kieran Drew
In November 9, 2016
On News
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I think it is safe to say that 2016 will go down in history as the year of political shocks and surprises. On the back of an unexpected vote for the UK to leave the European Union, we have now all woken up today with the news of Donald Trump securing the US Presidency.

Short-Term View

This has already and will continue to cause markets turbulence over the next few weeks as the global markets process this news and re-stabilise. We have already seen a weakening in the dollar, which we anticipate will continue in the short term and it’s possible that the pound may move in the opposite direction. However, as always, where there is chaos there is opportunity. As the markets take a short-term tumble, this should be seen as nothing more than a flash sale.

Much like in the initial aftermath of the EU referendum, the news today brings the opportunity to buy into the markets at a discount. So I would recommend that if you have any excess cash deposits, now is a great time to invest.

It is anticipated however, that this opportunity will be short lived and the markets will bounce back, just as they did after Brexit, possibly in a few days or maybe a few weeks.

Long Term View

Looking forward over the medium to long-term, it is believed that many of Donald’s more radical policies will be watered down and the more conservative political system with the House of Representatives and the Senate will continue to control most of the policies set for the United States. From an investment perspective, over the long term and certainly over the next four years, we do not anticipate any significant change or shift in the US economy or growth prospects as a result of this election. This is good news for the long-term performance of your investments.

Mr. Trump is actually seen as a business friendly figure, particularly because of his tax proposals which, assuming they are implemented, would reduce corporation tax and provide stimulus to the economy and business growth. This could therefore be a good thing long term for US Equities.

As always, the benefit of having a well diversified investment portfolio will continue to protect you and smooth out what will be a bumpy ride over the next few weeks. Of course, we will be continuing to watch the market reactions closely and as the dust settles, fund managers will make more strategic decisions on whether any changes should be made to their existing clients investment portfolios.

38736043 - cup of tea and sugar with teapot over blue backgroundPersonally for now, my advice is to take advantage of the market dips with any spare capital you can and outside of that, turn off the news and have a cup of tea until this political and media circus is over!

 

Disclaimer

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 Please remember your home or property may be repossessed if you do not keep up repayments on your mortgage.  We give clients the option to pay for mortgage advice by fee rather than commission. Equity Release refers to lifetime mortgages. To understand the features and risks, ask for a personalised illustration.

 The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto Enrolment, Tax Advice and Estate Planning.

 The opinions contained within this blog, do not constitute financial advice and no action should be taken based on this content alone.

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Disclaimers

The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto-Enrolment, Tax Advice and Estate Planning. Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. https://register.fca.org.uk/

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