Trump Victory- how does this impact Discovery Funds?
Discovery Invest have just released an article indicating how they are viewing the Trump victory on their Discovery funds and the market as a whole.
As this is very topical, I have attached their article for download below.
Some of the interesting points:
Trump is the first US President to be elected who has never held formal political office nor a position in the military, so there are a lot of unknowns in how he will take decisions, and how he will fill his transition team.
In the medium term, his protectionist agenda may weigh on global growth if pursued, with looser fiscal policy providing some offset. In combination, these measures could also lead to higher inflation.
However, this election result reinforces the sense that populism is on the rise globally and concerns are now likely to focus on how this phenomenon will impact other forthcoming elections.
I tend to think that the “populism” for want of a better word, is directed primarily at the wealthy status quo. The gap between rich and poor is growing so quickly and getting so big, that there simply has to be a shift. And I suspect that this shift will continue along the lines of getting power out of the usual channels in an effort to disrupt them. Therefore, there will be no “business as usual”. My prediction would be to watch where the money and status quo are… and expect disruption, especially at any democratic election).
If you want to read Discovery Invest’s take on things: download here…. how_discovery_funds_are_impacted_by_us_election