By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 34 2016\
Key points
- Donald Trump’s election as President of the United States risks ushering in a period of policy uncertainty which could cause further share market weakness in the short term.
- Australia and Asia generally are particularly exposed to this given the high trade exposure regionally.
- Trump’s victory is a negative for “risk assets” like shares and the $A in the short term – but if he becomes more pragmatic as President, any short term weakness will provide a buying opportunity.