The Investing Implications of the 2016 US Election
It is a simple matter of fact that the way the world moves has an impact on the potentiality of stocks and trading wares and as far as the movers and the shakers
of the world go it does not come any bigger than the US elections. When boiled down to its essence the nature of a world leader can have impressive or dire consequences on the economic stability of the entire globe and the knock on effects can last longer than the new president’s administration.
This 2016 US election race has been one of the hottest competitions since Truman won his surprise victory back in 1945. The world over has been sat on the edge of their seats as they watched Hillary Clinton battle Donald Trump for the big chair in the White House. But more than just the typical presidential race this campaign has been filled with drama and scandal all of which affect the economy.
When it comes to investing there is nothing worse than an unpredictable market and this is what we are talking about. It is no secret that Donald Trump won an unexpected victory but his views on many issues has divided the nation to a degree unseen before and it has left investors with an uneasy feeling. Financial experts the world over have been spending long days over the past few weeks trying to determine the effect of this outcome with little success. Oddly, it was forecast that if Trump were to win then there would have been a massive downshift in the markets due to loss of faith but the reality was something rather different. While it is true there was a drop at the opening of play the day actually ended on a high note. One of most interesting parts of our global markets is that everything is watched constantly and opportunities seized upon. This is exactly what happened. As the result came through faith and trust in the markets fell as everyone tried to protect their own interests and as prices fell people saw the opportunity to buy while the prices were down buoying the markets which in turn drove the market back up. It was one of those strange days when a predicted event gave unpredictable results. This turn of events is what boosts my investing confidence in the markets. We are so closely monitored and tied together that only a truly catastrophic event could really bring it down whereas a change of management is nothing more than another blip in the trading day.
While many financial experts may grind their teeth in frustration at reading my analysis of the markets I can’t help but feel that to some degree they are so focused on what may happen and what to do about it that they fail to see the bigger global picture and more importantly fail to see how the trading mind works.
In the end it is impossible to say for sure what in the investment potential is now that Trump is in power but this is no different to any other day of the year when this happen and trades either work or fall through. What I can tell you is that for any bright minds out there with good predictability models for trading the future may yet be golden.