US Election – What’s Next?

The US election has been run and won….by Donald Trump! And while many didn’t see it coming and are still in shock, people are also asking what that means for them.

Well, there are massive ranges in the expected outcomes from… the world is about to collapse to the US flourishing, but in reality no one knows what’s going to happen.

The main thing that we can say is that markets operate even with world events. They impact it and we will at least see short term volatility but the idea behind quality financial advice and putting in place a diversified portfolio of assets is that your investments weather any bump, or in this case Trump, along the way.

To see Jenny’s take on the US election and the affect it will have on the Australian and International markets, click on the video below.

Dr Shane Oliver is the Head of Investment Strategy and Economics and Chief Economist at AMP Capital. He provides economic forecasts and analysis of key variables and issues affecting, or likely to affect, all asset markets. The following is his take on Donald Trump’s Key Policies but again, these will affect the American people rather than having an impact on the long term financial markets.

Trump’s Key Policies

Taxation: Trump promises significant personal tax cuts including a cut in the top marginal tax rate to 33% from 39%, a cut in the corporate tax rate to 15% from as high as 39% and the removal of estate tax.

Infrastructure: Trump wants to increase infrastructure spending.

Government spending: Trump wants to reduce non-defence discretionary spending by 1% a year (the “penny plan”), but increase spending on defence and veterans.

Budget deficit: Trump’s policies are likely to lead to a higher budget deficit and public debt.

Trade: Trump wants to renegotiate free trade agreements and has proposed various protectionist policies, eg; a 45% tariff on Chinese goods, 35% on Mexican goods.

Regulation: Trump generally wants to reduce industry regulation, which would be good for financials and energy.

Immigration: Trump wants to build a wall with Mexico, deport 11 million illegal immigrants, put a ban on Muslims entering the US and require firms to hire Americans first.

Healthcare: Trump wants to repeal Obamacare and allow the importation of foreign drugs.

Foreign policy: Trump wants to reposition alliances to put “America first” and get allies to pay more, would confront China over the South China Sea and would bomb oil fields under IS control.”

Source: Dr Shane Oliver: AMP Capital.