Investors urged to avoid knee-jerk reactions in response to Trump’s lead
Despite nervous pre-election markets, investors shouldn’t panic, but instead reassess their financial strategies and investment portfolios.
Following the ABC News/Washington Post poll revealing that Donald Trump is marginally ahead of Hillary Clinton in the race to the White House, global stock markets are somewhat anxious.
As I was quoted as saying in the Financial Times, Interactive Investor and Fintech Finance yesterday, amongst other media, since the poll results were announced, shares in Asia dropped to a seven-week low; Europe’s Stoxx 600 index hit its lowest level in months, and the US dollar is on the defensive.
The markets are nervy in response, due to the uncertainty that Trump represents.
That said, this is just one poll; Trump is only one percentage point in front; and global markets always tend to exaggerate.
As such, investors must steer clear of making any knee-jerk reactions at this point.
However, the 2016 election has indeed changed American politics, and will, in all probability, affect how people generate, grow, maximise and secure their wealth in years to come.
Whether next week will see a Clinton or Trump victory, change will definitely be on the way. Therefore, it’s essential that Americans act now and re-evaluate their financial plans, in order to make the most of inevitable opportunities, and mitigate any risks.
The optimum way to do this is to ensure that wealth portfolios are suitably diversified, across asset class, sector and geographical regions; people must ensure they are aware of their tax liabilities and how they may change; and, crucially, seek professional, independent, financial advice.