Trump Wins!!! What will this mean for our finances?
How will Trump’s win affect the UK?
As the world reacts to Trumps victory, many of us here in the UK are asking how this is going to affect us. Especially post-Brexit.
Being in Cornwall, we often feel we are slightly sheltered from certain world events, so many of us are asking how will we be affected by Donald Trumps election victory. Will any of this have an impact on our investments, pensions and finances? Will your retirement options be affected?
What will it mean for our trade deals?
Now Trump has been elected as president it will most likely help Britain with it’s trade deals with America post-Brexit as Trump was a big supporter of Brexit. He said that “Britain will not be at the back of the queue” for a trade deal with the US. He also applauded us for taking back our country with our vote to leave the EU saying “I think it’s a great thing that happened, an amazing vote, very historic. We are very happy”. He has also said that we would be ‘treated fantastically’.
How has it affected the Global Economy?
The initial reaction around the world to Trumps victory has been rather negative with markets falling with a 5% fall in S&P futures. The dollar lost value against the Pound, Euro and Yen. There will obviously be a knock on effect from this which will affect us all here down in Truro, Cornwall in one form or another.
Anthony Gillman – Manager of Old Mutual Spectrum and Generation Portfolios has said “though the short-term effect of the election result on markets could be to increase market turbulence, investors may, after taking the time to digest the result, refocus on the positives of the US economy, and the stimulating effect Trump’s measures may have on it.”
Click to read Gillman’s full article on Trumps victory and it’s effect on UK Finances.
Ian Heslop, Manager of the Old Mutual North America Equity Fund has stated that “The dollar has come under pressure, both because a hike in interest rates by the US Federal Reserve now seems less likely, and also because investors may place a higher risk premium on US investments. Volatility across many asset classes could increase in the short-term”.
Initial affect on the Stock Markets
As the UK woke to the news of Trumps vistory, some of Europes major stock markets were down. The FTSE 100 for exaple was down 1.2%, Germany’s Dax was down 1.77% and France’s Cac was down 1.4%
Dow Jones closes at all time high
10th November 2016 update: As Wall Street assesses the impact of Donald Trumps win, the Dow Jones industrial average closed today at a new all time high. Trading today started with big gains in Asia, and the Dow ended today up almost 1.2% at 18,807 points.
Bloomberg has tweeted “The Dow climbs 211 points to close at an all-time high” along with the following:
US Government bond yields have also ended higher today. Which is likely due to expectations of higher inflation along with extra borrowing by the US government.
US Banking sector shares also surged to levels we haven’t seen since 2008, whereas technology shares sank.
If you feel you could be affected by Trumps victory, or feel you need some kind of financial protection then please contact us for a friendly chat.
I hope you find the information we provide of use.
Please note the information published on this website is for information purposes only.
Last updated: 11th November 2016
This site, Financial-advisortruro.co.uk, has been created and provided by Liquid Lava. We are an independent marketing website and are not authorised to give advice. We are not liable for any advice provided by, or obtained through a third party. The information published on this website is for information purposes only.
Care has been taken to ensure that the information is correct, but we neither warrant, represent nor guarantee the contents of information, nor do we accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. We do not give personal advice and the information provided is only to provide an overview of the areas of finance. Anyone considering taking any action may wish to seek advice from a Financial Adviser registered with the Financial Conduct Authority. We cannot be held liable for any losses incurred.