The election of Donald Trump to the presidency creates a great deal of uncertainty over both the economic and policy outlook for the US.
In the short term, the key point to consider is how this uncertainty will impact confidence amongst households and businesses.
What should you do?
When reflecting on this event, it's important that you understand your investments and super and make the most of it. Here's some things we think you should consider.
- Take a long-term view – market fluctuations are a normal part of the investing cycle and there's bound to be some short-term volatility following this election. Over-reacting and making short term decisions can mean missing out on subsequent market improvements.
- Understand how your investments and super are invested – check your annual statements to see how your investments and super are invested. It’s likely to be allocated to a range of types of investments, not just shares. This diversification helps offset market volatility in a particular investment type.
- Have an investment plan and stick to it – evaluate your attitude to risk and investing and build this into your plan. Review it regularly with us to ensure you’re still on track to meet your goals.
We’re here to help!
If you have any questions about how this massive change in the USA will affect you financially, please contact us!
One final thought:
Yesterday’s election of Donald Trump to be the 45th President of the USA was not expected by the media, the pollsters or the “experts”.
The experts predicted that the Dow Jones would fall 800 points.
The Dow Jones went UP by 256 points.
The ASX here in Australia will probably go up today. So much for all the expert’s opinions!
These comments by Robert Gottliebsen (Business Columnist) in today’s Australian newspaper appear to sum up yesterday’s historic events very well:
“Last night on Wall Street it was clear that Americans are relishing the fact that finally the smokescreen put up by the media elites has been removed and the nation can reflect the will of the ordinary people. The share markets embraced the idea that under Trump the US can be great again.
The profession of global journalism with its green, politically-correct agenda has been shown to be absolutely out of touch with ordinary Americans. The same event happened in the UK with Brexit and will occur in Europe. At least on day one the victory of ordinary people over the elite journalists, public servants and politicians cheered the share market. But there will be plenty more surprises. Stay tuned.”