The Impact of the US Election Result on Financial Markets

December 2nd, 2016, by Georgina Ogilvie-Jones

Initial equity market response to the election of Donald Trump has been based on sentiment rather than facts and much uncertainty remains about the specific policies that will follow. Nevertheless, the reaction has been generally positive. Markets are being driven by the expectation the new president will cut taxes, reduce regulations and increase infrastructure spending. US equities have forged ahead, with the S&P 500 reaching new highs, including most recently a record closing high on 25 November of 2,213. This would once again lead us to caution on valuation levels within the US equity market and the possibility of retrenchment…

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