After The Elections...
- by Monica J. Weissmann, CFP, CIM, MEE
WE had the BREXIT surprise and now we have the President TRUMP surprise…
I would like to comment that whatever anyone of us felt last night doesn’t matter today. As an investment professional I would like to share the important message - it is not the end of the world, despite the fact that markets do not like surprises (and these election results were quite a big one).
I am sharing commentaries by Philip Petursson from Manulife Financial, which has an in depth analysis done in November, but prior to the election day.
I am sharing commentaries by Philip Petursson from Manulife Financial, which has an in depth analysis done in November, but prior to the election day.
I would like to emphasize some of the ideas from this article. It is important to remember two things about the U.S.:
- Within a diversified portfolio, an allocation to the U.S.stock markets should be viewed as a strategic allocation not a short term tactical trade, given the depth and breadth of the market and the number of quality companies.
- The founders of the Constitution thought it was best that there be checks and balances in place within the U.S. political system (Congress, the Senate, the Supreme Court, etc.) in order to prevent the abuse of power by any individual executive branch.
In addition, there are a few links below with commentaries from other sources that I value and I hope that by reading them you will get a sense that there are always opportunities waiting to be discovered.
From Fidelity Canada – c/o Fidelity US - the Special Report “The 2016 Election and You” link will provide an analysis of things that may happen and may impact your investments.
From Fidelity Small Cap America portfolio manager Steve MacMillan:
From Invesco you can read further commentaries:
From Mackenzie Investments:
To sum up, right now the USA has a Republican President, a Republican dominated Senate and a Republican Congress. Republican priorities make it probable that there will be less regulation on businesses, lower taxes and an overall business friendly environment. Donald Trump has specifically highlighted a fiscal spending initiative. It is still not clear how the financing (or resultant deficit) of this fiscal expansion plan will be done, but in time things will clarify themselves as the new president elected will highlight key policies.
