What Trump means for the markets

After an initial bout of panic, investors are getting comfortable with the idea of Donald Trump as US President. But it will not be status quo. Fund managers and wealth advisers explain how the investment landscape is about to change.

The election of Donald Trump came as a bolt out of the blue for financial markets. Lulled into complacency by polls depicting the Republican candidate as the underdog, and with most pundits writing off his chances, the shock of Trump’s victory sent Asian markets tumbling on Nov 9. Yet, by the end of the week, things had calmed down significantly. Setting the tone was the Standard & Poor’s 500 index, which climbed 1.2% to close at 2,164.45 on Nov 11.

Now, some consensus seems to be forming among fund managers and investment advisers that the future is not as bad as everyone initially feared. Much like the aftermath of the shock Brexit vote in June, they say the market is likely to stabilise after a period of uncertainty. The FTSE 100 Index is currently more than 6% higher than it was on June 23, when the Brexit vote took place.

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