Global anticipation for this event seemed to surpass New Year’s Eve to see in the year 2000. The US heavyweight battle of Trump VS Hillary. Only America could bring us such an entertaining event filled with scandal and surprise!
The stock market was on a general downward spiral for the last few weeks as investors became nervous about what was to come and who would ultimately triumph. After an exhaustive campaign running for 18 months, and over US$1.3bn was spent by the candidates selling their story to the people of America, the underdog prevailed.
Trump had campaigned strongly on tax reform, fiscal stimulus via infrastructure, healthcare and foreign policy. He tapped into the emotions of ‘Middle America’ who had become frustrated with politicians telling them that everything would be OK while they watched nearby factories close and opportunities wane.
Markets were initially hesitant as the possibility of a Trump presidency became more apparent. But unexpectedly, Trump took to the stage to claim his victory and presented as a humble and clear thinking man that few people had witnessed during the campaign.
He demonstrated a clear purpose for the future of his country involving a large focus on bringing the country together, increasing jobs through infrastructure projects and markets immediately regained confidence.
The speech is actually well worth a view if you have the time – https://www.youtube.com/watch?v=owuq_An4cnk
What about the markets?
The Australian market saw its largest day of gains in over 5 years following a strong lead from the US market, as investors bought into companies likely to profit from Trump’s proposed policies.
We believe there will be a period of short term volatility over the coming months until he is sworn into office in January and the effects of the new presidency flow around the globe. Once this initial uncertainty has been resolved, we expect the selection of Trump should be positive for global markets as we see an increase to US consumer confidence, lower personal and company tax rates and increased infrastructure spending, providing a boost to an already strong economy.
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Director and Wealth Advisor
Endorphin Wealth Management
Phillip Richards is a qualified Financial Advisor with more than nine years’ experience in the industry. His expertise in investment, superannuation, SMSF, retirement planning and insurance will help you assess your options to build your wealth. Contact Phillip today to discuss how you can build your own wealth and plan to reach your goals.
This information is general in nature and does not take your personal situation into account. If you are interested in taking control of your wealth, contact Endorphin Wealth Management.