Dear Investors - Post US Election coverage
Erica Stephenson - Nov 10, 2016
The US Election has shocked most of us here in Canada and around the world, but of course we must remember that fully almost 50% of Americans wanted a change, and chose Donald Trump. After listening to both Secretary Clinton's and President Obama's c
The US Election has shocked most of us here in Canada and around the world, but of course we must remember that fully almost 50% of Americans wanted a change, and chose Donald Trump. After listening to both Secretary Clinton's and President Obama's conciliatory speeches, it seems there is much work to be done in their nation.
Last night, the markets reacted with a quick decline in the S&P 500 futures of over 5% when it looked inevitable that Mr Trump was going to win - markets do not like uncertainty. Asian markets quickly followed suit with a decline of over 5% as well. This morning however, both Canadian and US markets were flat and are positive and rallying higher like Financials, Health Care, Energy and Industrials.
We are monitoring all North American capital markets are preparing for any volatility which may still be to come in the short-term. Overall, despite any personal feelings we may have, this will be an exciting time and we look forward to finding the best risk-return assets for you and your portfolios. Although a lot of attention is put on the results of the Presidential Election, ultimately it is economic growth and interest rates which will affect the markets, not who is in the White House.
Our strategy to identify companies that are selling at a discount and offer good value with some growth potential has not changed. The dividend yield strategy continues to be a good one in this environment of volatility and muted global growth.
Time will tell how we as Canadians will be effected with a Republican President, Senate and House of Representatives and the impact to our environment, free trade and national security.
Rest assured, we will continue to monitor the situation and let you know if changes need to be made to your portfolios. In the meantime, if you have any questions or would like to talk about post-election results, please give me a call.
Follow me on Twitter @ELSwealth or schedule an appointment at 604-643-7023.