The results of the US presidential election are now in with a victory declared for the Republican candidate Donald Trump.
What are the consequences for the US and global economy following Trump’s win and what are the implications for investors. Fidelity's investment experts have outlined the potential impact on investors and where they see potential investment opportunities.
Angel Agudo, Portfolio Manager - US Equities, argues that after an initial reaction, in the long term the outcome of a new President does not dictate how markets act. However, he believes that Trump has been widely viewed as someone who could bring unprecedented policy uncertainty. Consequently, treasuries and gold could initially benefit from safe haven flows as investors get into a risk-off mood.
Nick Peters, Portfolio Manager - Fidelity Multi Asset, views Trump’s victory in the race to become US President as being likely to be interpreted negatively by markets, with Trump’s restrictive policies on immigration and free trade potentially damaging US growth.
Dierk Brandenburg, Senior Sovereign Analyst - Fixed Income, believes that Trump’s win indicates that people in the US want change and are prepared to take the risk on Trump. His unpredictable behaviour throughout the campaign and his unorthodox views will not go down well with markets, at least in the short term.
Bryan Collins, Portfolio Manager - Asian Fixed Income, argues that with a Trump Presidency we could see an adjustment to the current momentum of markets before the official handover in 2017. US Treasuries may initially rally, and then steepen as expectations for further strengthening of the Dollar versus other major currencies come off.
