The year 2016 was marked by sizable political shifts that have changed the way we think about volatility and investments.

From Brexit to a Trump presidency, populism is on the rise and so too is “populist investing”. Trust in pollsters to predict election and referendum results has ebbed away, making politics a higher investment risk today than twenty years ago.

It seems investors and news outlets are closely scrutinizing every word Trump says — and maybe too closely. While markets usually react to significant policy changes, markets today are reacting to hastily constructed late-night tweets from the White House. There is even a new app that alerts users when Trump tweets about a stock they own.

The good news is these somewhat alarmist responses to Trump tweets appear short-lived in nature. In early December, Boeing suffered a rapid fall in stock price after Trump put out a negative tweet about the aircraft manufacturer. However, Boeing’s share price went on to reach an intraday trading record high in January as investors reacted to a better-than-expected set of quarterly results.

While political risk is and should be taken seriously, Trump’s lively off-the-cuff statements perhaps need to be taken with a hefty pinch of salt. Knee-jerk reactions to Trump are all too commonplace. The stock market fell in the immediate aftermath of Trump’s election victory only to subsequently stage a strong rally.

What does this mean for the financial markets and retail investors? Advisors will need to quell client anxieties and also adapt to the new realities and uncertainties of the Trump presidency. While some will be quick to buy and sell in a bid to profit from Trump-induced share price movements, investors should try to look beyond the short-term noise and adopt a longer-term investment horizon.

Many industry analysts think Trump’s pro-business and pro-infrastructure policies will boost economic growth and, in turn, boost stock markets. Since Trump’s inauguration, the Dow Jones closed above 20,000 for the first time and the S&P 500 and NASDAQ have also risen to all-time highs. Index funds and ETFs are one option for those investors looking to benefit from rising stock markets.

Nobody of course knows how stock markets will perform this year. But investors would do well to look at the bigger, long-term macro-picture rather than make knee-jerk investment decisions on the back of the president’s 140-character thoughts.



  1. Pingback: cialis coupon cvs
  2. Pingback: ciprofloxacina
  3. Pingback: buy naltrexone
  4. Pingback: cialis
  5. Pingback: viagra suppliers
  6. Pingback: ed pills for sale
  7. Pingback: cheap ed pills
  8. Pingback: impotence pills
  9. Pingback: cialis 10mg
  10. Pingback: buy levitra online
  11. Pingback: vardenafil 10mg
  12. Pingback: best ed pills
  13. Pingback: viagra buy
  14. Pingback: free slots
  15. Pingback: loans online
  16. Pingback: cash loan
  17. Pingback: What Is PhenQ
  18. Pingback: cialis generic
  19. Pingback: 5 mg cialis
  20. Pingback: buy cialis
  21. Pingback: cialis buy
  22. Pingback: cialis 20
  23. Pingback: generic cialis
  24. Pingback: online casino usa
  25. Pingback: best casino online
  26. Pingback: cheapest viagra
  27. Pingback: online viagra
  28. Pingback: buy viagra pills
  29. Pingback: buy cialis
  30. Pingback: viagra connect
  31. Pingback: cheap tadalafil
  32. Pingback: viagra pill
  33. Pingback: buy viagra amozon
  34. Pingback: buy cialis
  35. Pingback: real casino
  36. Pingback: Viagra 150mg usa
  37. Pingback: Viagra 100 mg otc
  38. Pingback: generic viagra
  39. Pingback: viagra
  40. Pingback: online viagra
  41. Pingback: cialis online
  42. Pingback: Cialis 10mg canada
  43. Pingback: viagra
  44. Pingback: ceclor 250mg pills
  45. Pingback: order ceftin 125mg
  46. Pingback: celexa 10mg cheap
  47. Pingback: cost of cephalexin
  48. Pingback: slots real money
  49. Pingback: real money casino
  50. Pingback: free slots online
  51. Pingback: online casinos
  52. Pingback: usaa car insurance
  53. Pingback: aarp car insurance
  54. Pingback: aaa car insurance
  55. Pingback: erie car insurance
  56. Pingback: quick loans online
  57. Pingback: ivermectol
  58. Pingback: cbd oil amazon
  59. Pingback: type writer paper
  60. Pingback: write my papers
  61. Pingback: buy essay paper
  62. Pingback: cleocin 300mg uk
  63. Pingback: clomid 50 mg otc
  64. Pingback: viagra 100 mg cost
  65. Pingback: clonidine 0,1mg uk
  66. Pingback: clozaril 25mg otc
  67. Pingback: colchicine canada
  68. Pingback: coreg pharmacy
  69. Pingback: buy compazine
  70. Pingback: cialis
  71. Pingback: dapsone caps otc
  72. Pingback: thesis help online
  73. Pingback: cheap doxycycline
  74. Pingback: cost of elavil
  75. Pingback: erythromycin nz
  76. Pingback: etodolac pharmacy
  77. Pingback: geodon cheap
  78. Pingback: imdur 30mg generic
  79. Pingback: online pharmacy
  80. Pingback: how viagra works
  81. Pingback: canadian viagra
  82. Pingback: More Bonuses
  83. Pingback: imuran generic
  84. Pingback: buy lopid
  85. Pingback: Cordarone
  86. Pingback: order motrin 600mg
  87. Pingback: phenergan 25mg uk
  88. Pingback: viagra
  89. Pingback: prevacid price
  90. Pingback: cialis 40 mg price
  91. Pingback: prilosec 20mg uk
  92. Pingback: procardia coupon
  93. Pingback: protonix tablet
  94. Pingback: reglan 10mg price
  95. Pingback: revatio tablets
  96. Pingback: robaxin for sale
  97. Pingback: buy rogaine 5%
  98. Pingback: tenormin usa
  99. Pingback: thorazine coupon
  100. Pingback: verapamil nz
  101. Pingback: order voltaren
  102. Pingback: zestril 5mg price
  103. Pingback: internet
  104. Pingback: zovirax tablet
  105. Pingback: zyprexa pills
  106. Pingback: cheap cialis india
  107. Pingback: escitalopram usa
  108. Pingback: aripiprazole nz
  109. Pingback: fexofenadine cheap
  110. Pingback: glimepiride usa
  111. Pingback: meclizine generic
  112. Pingback: atomoxetine usa
  113. Pingback: buspirone canada
  114. Pingback: acheter cialis
  115. Pingback: cephalexin coupon

Comments are closed.