What opportunities will SA and investors have with Trump in the White House?
We can expect a wilder roller-coaster ride — but that’s no reason to hide in cash, writes Dawie Roodt
Stumped. That probably best describes the reaction of just about everybody to Donald Trump’s win – I suspect also of many Trump supporters. And don’t believe the "I told you so’s", most just took a contrarian view for fun when they predicted a Trump win. Nobody suspected this. No wonder the markets reacted so violently. But what does it mean for investors in SA? First, a bit of context. I believe global financial markets are mostly frothy and that the world economy failed to gain significant traction, even after massive stimulation. I also believe that a significant market correction was on the cards, something that probably would have been sparked by a US rate hike relatively soon. So too might a Hillary Clinton win have had to deal with some sort of financial or economic realignment relatively soon. From a market point of view, a Clinton win would probably have been better because it’s "more of the same"; that is more certainty, which is usually good. What we have is a Trump win, ...
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