Scottish Friendly: Donald Trump victory a body blow
Scottish Friendly has dubbed Donald Trump’s shock election victory as “another body blow for political and economic stability”.
The friendly society’s savings expect Calum Bennie reckoned this rise of right wing populism could see the stock market rock in the next few months.
He also brought up the adage ‘when America sneezes the world gets a cold’, adding that investors need to hold their nerve.
He said: “Donald Trump’s win is another body blow for political and economic stability in what has been a year of continued investor uncertainty.
“His victory raises very serious questions about the direction of politics in established western economies.
“The rise of right wing populism combined with a reaction against globalisation has now turned the table on its head and unleashed a wave of instability and insecurity which is likely to make the stock market a bit of a bumpy rollercoaster ride for the next few months.”
He added: “Donald Trump boasts that he will make America great again. In fact his protectionism is de-stabilising and, while there may be a short-term feel good factor among those Americans that voted for him, his policies seem more likely to make many Americans poorer overall.
“A combination of lower incomes and economic uncertainty is not good news for the American economy and, by extension, investors.
“As the old adage goes, when America sneezes the world gets a cold and investors need to keep their nerve while volatility plays out and a new normal starts to emerge.”