Trump’s presidential inauguration and its potential effects
On 20 January, Donald Trump will be inaugurated as the 45th President of the United States of America. We have seen much speculation about what will happen to markets around the world in recent weeks since Trump won the race against Hilary Clinton to claim the top spot. Markets had a great run in the end few weeks of the year to 31 December, 2016 and many are optimistic that this will continue on the back of potential growth fuelled by Trump’s economic policies set to be put forward shortly to congress.
Portfolio fund managers from around the world have since been considering the potential economic and market effects Trump’s arrival into the top job will bring for this year and future years ahead. Infrastructure stimulus and economic growth promised by Trump prior to his presidential win have been the main reasons behind the market returns experienced in the last few weeks. We must now adjust our portfolios accordingly to anticipate the market conditions ahead of us.
Three potential scenarios exist for the short-term future (i.e. 1-2 years):
- a bull market scenario where equities return positive growth,
- a stagnant scenario where the market remains flat, and
- a bear case scenario where equities decline in value and return negative growth.
Which scenario will take place and come to fruition is not yet known and we must adjust our portfolios accordingly to ensure we benefit from the upside the market has to offer as well as protect ourselves from any downside in performance due to political and economic changes both domestically and around the world.
Contact us today to discuss and review your investment position and portfolios to ensure they continue to remain aligned with your investment needs and objectives.
Total Advice Partners are available to assist with all your enquiries. Please feel free to contact us at any time to discuss your situation and financial needs.
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