Trump’s US election victory is a bigger deal than Brexit and will create instability on a wider international scale, the chief executive of financial consultancy deVere, Nigel Green has warned.
However he added that there will be financial opportunities caused by panic-selling and mis-pricing.
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.”
He added: “Whilst some people are put-off investing because of volatility, many of the most successful investors welcome it. This is because major buying opportunities are always found where there are fluctuations.
“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.”