Dr. Shane Oliver, AMP Head of Investment Strategy and Chief Economist looks at how the Trump victory will affect investors and the Australian economy.
The key points are as follows:
- Donald Trump’s election as President of the United States risks ushering in a period of policy uncertainty which could cause further share market weakness in the short term.
- Australia and Asia generally are particularly exposed to this given the high trade exposure regionally.
- Trump’s victory is a negative for “risk assets” like shares and the $A in the short term – but if he becomes more pragmatic as President, any short term weakness will provide a buying opportunity.