02 Jan The market gives Trump a window

Despite all the doom and gloom predictions attached to a Trump victory this morning, the markets are recovering last night’s losses. The fact that the Republican’s won the Senate and Congress and Donald was presidential in his acceptance speech has calmed the markets for now.
Longer term we don’t know of course and it will depend on whom he appoints to key positions, what foreign trade and domestic policies he pursues. There is a feeling around that he may push to stimulate domestic jobs and growth. Of course that will be good for US stocks and the dollar short term. He may create inflation and grow the deficit and it may back fire but today the market is in a wait and see mode.

Either way the world has changed forever and the market, rather than run for the hills, has decided to hang around and see what happens. We are in for some seriously interesting times over the coming months.

We know whatever happens in the US has ripple effects globally. Europe’s political elite can only look on in horror. We have a raft of elections in Europe next year and there are now some big names in the chopper.

Brexit and Trump show that the landscape has changed and the reliable has gone. Maybe that is a good thing but for investors it poses challenges. Over the coming weeks a macro-economic picture should emerge and investors need to position to benefit in a new world. Whether that is in stocks, commodities or an absolute return fund, keep your funds liquid until you develop a strategy for 2017. Mostly my experience is that markets like this offer good opportunities for the investor who holds their nerve.