November 2016 - U.S. Election Update
Neil Kendall, Managing Director of Tupicoffs, discusses the election of Donald Trump as President of the United States and the positive response of the investment markets to his win.
Welcome to our post US election update, in a surprise to most of us, this week Donald Trump was elected president of the United States.
This video is to look at the implications of this win for us in Australia. A couple of months ago we put out an update where we recommended that people remain invested through the US election cycle for two reasons;
We thought that the Trump Presidency was unlikely,
and
We thought the alternatives were not attractive.
It turns out in regards to the Trump Presidency we were wrong, he has been elected.
However in terms of alternatives, that argument still remains strong. Moving out of investment markets at this point in time would lock our investors into 1.5% - 2.5% returns. So far the markets have responded quite positively to the election of Donald Trump.
In September we said to you we thought markets would be volatile, and we maintain that view. We still expect to see ups and downs, however it is likely that results will be net positive. This expectation is based on the strength of both the US economy, and the strengthening European markets.
At this stage there is no need to worry, we're doing that for you. We recommend that you stay invested unless you have personal concerns. If you are concerned, or if you'd like a lower exposure to investment markets, call us and make a time.
We're happy to sit down and review your individual circumstances with you.
Highlights
Despite the surprise of Trump’s election, staying invested in the market has proven to be a wise decision, as the market has responded positively to his win.
The recommendation to remain invested was based on the unattractive alternatives available, which have not improved significantly since the election
While volatility is expected in the market, the overall outlook remains positive due to the strength of the US economy and European markets.
Clients are reassured that their investments are being carefully monitored, with the option to review their positions if personal concerns arise.
The focus remains on providing peace of mind to clients regarding their financial decisions, highlighting the importance of seeking professional advice in uncertain times.
