Since Donald Trump was elected and won the 2016 US Presidential election the US Stock market and other markets around the world have experienced significant changes. In the fortnight following Trumps election we have seen a rise in the US Stock Market of more than 3%. This increase in performance is not across the board though with winners and losers dividing the sectors which make up the S&P500 index. Commodity indices being some of the top performers over the past fortnight, some of which have seen growth of over 16%.
These large increases in performance are said to be due to 2 simple reasons;
1. The policies Trump has communicated to date have the potential to change the pathway and direction of the market significantly. As forecasts for certain sectors and industries may now look considerably different in a few years to what they were once thought.
2. Security prices have changed as investors have realigned their expectations for the future in light of new opportunities which may arise.
What we have to do now is determine the potential risks which may arise as a result of the changes and re calibrate investments accordingly.