The surprise election of Donald Trump as U.S. president wrong-footed investment experts. finews.asia compiles the most salient reactions as experts search for answers.
Joe Amato, President and Chief Investment Officer, Neuberger Berman:
«Safe havens such as the Japanese yen and Swiss franc are likely to benefit during the immediate fallout—although the picture is much less clear for the U.S. dollar and U.S. Treasuries, of course. A concerted 'sell-America' trade is a distinct possibility.»
Jacob Eliosoff, cryptocurrency hedge fund manager:
«I think a Trump presidency would be great for bitcoin, much like nuclear war would be great for bitcoin.»
Richard Jerram, Chief Economist, Bank of Singapore:
«Taking a step back, it is imperative for investors to remain calm and keep a longer-term perspective, with a balanced and diversified portfolio of high quality stocks and bonds. In this way, the new president is unlikely to have a dramatic effect on investments.»
Andreas Ruhlmann, market analyst at IG Bank
«Large fiscal measure could also have a positive impact on Inflation, which ultimately would benefit the USD, and banks. The latter may also benefit, if Trump abolishes the Dodd-Frank Act put in place to reduce the bank’s systemic risk, although we do not know yet what would replace it.»
Mark Haefele, Global Chief Investment Officer at UBS:
«US defense companies outperforming the wider US stock market, as we believe a Trump presidency will boost US military spending.»
Dominic Rossi, Global Chief Investment Officer of equities at Fidelity International
«The immediate impact will be on the Fed. The probability of a hike in interest rates in Dec, followed by two further hikes 2017, has fallen sharply. The dollar which has been trending higher in anticipation, has consequently reversed.»
Jupiter Ariel Bezalel, manager of Jupiter Dynamic Bond SICAV fund:
«However, medium term this is unlikely to be the case since Trump has been particularly vocal on the need to boost fiscal spending, saying he wants, at the very minimum, to double Hillary Clinton’s proposed $275 billion infrastructure programme, a measure he said he would fund via debt issuance. A debt-funded infrastructure programme of this scale could help to stimulate the economy and be quite inflationary – an environment that would be negative for rates and fairly positive for equities. Therefore, longer term we expect the U.S. yield curve to steepen.»
Zugerberg Blog, Swiss asset manager:
«The election will be for for the United States, it will shake the country out of the slumber of a weary economy.»
Paul Krugman, New York Times columnist and Nobel laureate:
«I truly thought I knew my country better than it turns out I did. I have warned that we could become a failed state, but didn't realize that it wasn't just the radicalism of the GOP, but deep hatred in a large segment of the population. How do we move forward?»
Giordano Lombardo, Pioneer Investments CEO and Group CIO:
«While the US election outcome is a surprise, it is by no means a 'black swan' event.»
Florian Ielpo, head of macroeconomics at Unigestion:
«As with the Brexit vote in the UK, this can be seen as another victory for the politics of anger currently sweeping across Western democracies.»
Katy Perry, pop star:
«Gonna cry my false eye lashes off tonight. We will never be silenced.»
