Donald Trump has won the US presidential election, riding a wave of global anti-establishment sentiment in a Brexit-like manner, upending the status quo. Republicans also won a majority in both the Senate and House of Representatives.
Fund managers and fund selectors alike are haunted by the prospect of Trumpian rule, but still deem a Clinton victory more likely. However, it’s paramount investors don’t leave themselves too exposed to the consequences of a Trump triumph.
American shares have broadly dipped as investors brace themselves for the possibility of an unexpected election victory by a certain real estate tycoon.
European investors have been rather apathetic about US equities for an extended period. This is unlikely to change if Hillary Clinton wins the presidential elections. A Trump win, however, will probably prompt a pronounced shift in sentiment.
With less than a week to go before one of the most contentious presidential contests concludes, some market participants are ignoring the noise, but many are fretting over shocks to equity markets and the potential fallout from protectionist trade policies.
Rathbones asset allocation strategist Edward Smith has argued that investors should “pay close attention to the insidious creep of protectionism, as US politicians and elsewhere look to harness the disenfranchised.”
Donald Trump called tax avoidance “smart” during the first live US Presidential TV debate with rival Hillary Clinton in New York.
The brouhaha over Hillary Clinton’s pneumonia is just the latest sideshow in the US presidential election circus. While it is unlikely to derail her campaign, it has served once again to highlight the fact that a Trump presidency remains a possibility and markets are increasingly concerned.
As headline risk rotates from Brexit to the US presidential election in November, research analysts are weighing in on what could happen.
