U.S. Presidential results are in

November 10th 2016 | Categories: Financial Planning |

After a seemingly long and difficult campaign Donald Trump has been elected president of the United States with the Republican Party retaining control of the House, and the Senate, in Congress. Just as we saw with the Brexit vote, the combination of rising inequality, stagnant middle incomes and the disenchantment of a large percentage of the population has seen a backlash against the establishment and helped deliver victory for Trump. This note looks at the implications.

Key points

• Donald Trump’s election as President of the United States risks ushering in a period of policy uncertainty which could cause further share market weakness in the short term.
• Australia and Asia generally are particularly exposed to this given the high trade exposure regionally.
• Trump’s victory is a negative for “risk assets” like shares and the $A in the short term – but if he becomes more pragmatic as President, any short term weakness will provide a buying opportunity.

Watch this video and hear what Dr Shane Oliver has to say.

Download the full article here.

What you need to know

Source: AMPImportant note: While every care has been taken in the preparation of this document, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) make no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This document is solely for the use of the party to whom it is provided.