Donald Trump winning the U.S. presidency is a bigger deal than Brexit and while firms should expect enormous volatility it will also provide, according to DeVere boss Nigel Green.
Green, founder and CEO of deVere, follows the multibillionaire real estate mogul and reality TV stars shock win in the US elections.
Green said: “Buckle up for a bumpy ride in the global markets. Whether President Trump will, in fact, do what he has said he will do throughout his campaign, or whether it was just soaring rhetoric to whip up his support base, for now, Trump winning is sending shockwaves across the world. As such, enormous volatility can be expected in the markets.
“The Brexit result was a real shock and created instability in the UK. But this is a far bigger deal as this creates instability on a much wider, international scale.
“The markets’ main concerns include Trump’s protectionist policies, focusing on potential trade wars with China – America’s largest trading partner – and with Mexico, it’s third largest.
“In addition, with Trump having said certain countries are ‘cheating’ due to their undervalued currencies, currency tensions should also be expected.”
Green also predicted that some big name investors would be working the markets following the election “because major buying opportunities are always found where there are fluctuations”.
He added: “Fluctuations can cause panic-selling and mis-pricing. High quality equities can then, for example, become cheaper, meaning investors can top up their portfolios and/or take advantage of lower entry points. This all, in turn, means greater potential returns.
“A professional fund manager will help investors take advantage of the opportunities that volatility brings and mitigate potential risks as and when they are presented.
“Anyone serious about enhancing their finances should be using this somewhat unexpected turn of events to create, maximise and protect their wealth.”
