{"id":97972,"date":"2016-11-10T07:37:06","date_gmt":"2016-11-10T12:37:06","guid":{"rendered":"http:\/\/countingpips.com\/?p=97972"},"modified":"2016-11-10T07:37:06","modified_gmt":"2016-11-10T12:37:06","slug":"are-the-financial-markets-being-short-sighted-over-trumps-victory","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/11\/are-the-financial-markets-being-short-sighted-over-trumps-victory\/","title":{"rendered":"Are the financial markets being \u2018short-sighted\u2019 over Trump\u2019s victory?"},"content":{"rendered":"
November 10, 2016<\/div>
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By George Prior<\/strong><\/p>\n

The financial markets could be being \u201cshort-sighted\u201d over Trump\u2019s victory, warns a leading investment analyst at one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

The warning from Tom Elliott, deVere Group\u2019s International Investment Strategist, comes as the S&P 500 Index wiped out a 5 per cent loss by the end of trading that had been triggered by Donald Trump\u2019s surprise presidential election victory.<\/p>\n

Mr Elliott comments: \u201cAgainst most analysts\u2019 predictions\u200e, the S&P 500 ended yesterday in positive territory.<\/p>\n

\u201cInvestors focused on three planks of Trump’s economic policy that are seen as beneficial to the US stock market.<\/p>\n

\u201cFirst, the lightening the load of regulations on certain sectors. This will help banks (repealing Dodd-Frank perhaps), mining and energy (repealing of some environmental laws), abolishing Obama’s Affordable Healthcare Act and the government’s pressure on pharma companies to reduce drug prices to European levels, which boosted pharma stocks.<\/p>

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\u201cSecond,\u00a0the creation of an infrastructure fund to build bridges and repair roads will boost certain sectors through increased government demand.<\/p>\n

\u201cAnd third, Trump is seen as fiscally lax, following the record of previous Republican presidents.\u00a0He has promised to lower taxes for companies and various segments of the population and his infrastructure projects will be pro-cyclical \u2013 that\u2019s to say, boosting demand in an economy \u200ethat is already growing at a decent pace of 2.9 per cent annualised in the last quarter.\u201d<\/p>\n

He continues: \u201cHowever, there are concerns that the financial markets are being somewhat short-sighted with yesterday\u2019s rebound \u2013 the biggest stock market rebound since 2008.<\/p>\n

\u201cThere are some potential risks that should still be taken into account.<\/p>\n

\u201cThese include the threats to trade agreements, old and new, and his pledge to halt immigration on which so many sectors of the American economy rely.\u201d<\/p>\n

He goes on to say: \u201cTrump\u2019s plans could well increase overall demand in the economy, boost growth and corporate earnings in the near term, but result in inflation further down the line. \u00a0 A typical boom and bust scenario may follow.<\/p>\n

\u201cAvoid Treasuries in this longer term scenario, which will react badly to a reassessment of currently low long term inflation and interest rate expectations.<\/p>\n

Mr Elliott concludes: \u201cInvesting under Trump may be a volatile experience, but with this comes key opportunities.\u00a0 As always, investors need to remain diversified globally, by sector, and by currency exposure.\u201d<\/p>\n

e:\u00a0george@priorconsultancy.co.uk<\/a><\/em><\/p>\n

t: +44\u00a0<\/em>207 1220 925<\/em><\/p>\n

Twitter: @PriorConsults<\/em><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/em><\/p>\n

www.devere-group.com<\/a><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior The financial markets could be being \u201cshort-sighted\u201d over Trump\u2019s victory, warns a leading investment analyst at one of the world\u2019s largest independent financial advisory organizations. The warning from Tom Elliott, deVere Group\u2019s International Investment Strategist, comes as the S&P 500 Index wiped out a 5 per cent loss by the end of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-97972","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=97972"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97972\/revisions"}],"predecessor-version":[{"id":97973,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97972\/revisions\/97973"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=97972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=97972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=97972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}