Guard your Investment Portfolio from Trump vs Clinton Uncertainty - Alldamoney

[Latest News][6]

Featured Posts
Latest News


Guard your Investment Portfolio from Trump vs Clinton Uncertainty

Most Investors would agree that a win by either of Hillary Clinton or Donald Trump would definitely impact on their investment portfolio, questions like what would be the difference between their presidencies. Are they of the same mold?  What impact would either make relating to job creation and particularly on investors? Need to be answered.
An election with no incumbent candidate carries along uncertainty and market’s reaction is mostly volatile because that’s exactly what the outcome will be “uncertain”. This outcome however, will ring a bell not only in the U.S. but the entire world investment community.
Experts will make their bullish and bearish predictions based on these expectations and other sentiments like new legislation or regulations that the coming government might introduce.
So here’s a look at what the November election could mean for the investments.

Hillary Clinton has endeared herself to some Wall Street leadership and has demonstrated that despite proposed tax increases (especially capital gains taxes) she has some political center ideas. Notably though, the market appears less concerned about Clinton because  in general sentiment seems to be that Hillary Clinton’s policies are likely to contain any big surprises.  If nothing else, she has a long track record and is known to be business friendly. And being a previous member of the present administration, Clinton’s policy will most likely be a carry on of the present administration that signed the Dodd-Frank Wall Street Reform Act, Affordable Care Act and created the Consumer Financial Protection Board on the way to raising taxes on the country's highest earners for the first time since the late 1990s.
or it Would mirror her husband policy  that repealed the Glass-Steagall Act, deregulate the telecom industry and sign the Commodity Futures Modernization Act, which exempted credit-default swaps from government oversights.

For trump, the billionaire-turned-politician has certainly shaken up the campaign with his often-contentious, straight talking; anti-politically-correct opinions. Lowering taxes and being pro-business are great starting points for investors everything about Donald Trump candidacy has defied predictions.  He seems to delight in defying expectations and making pronouncements that shock pundits and even the US international allies.  So what happens in the case of a Trump win?
But though he’s certainly proven himself to be a successful businessman, the unknown factor is how his colorful personality and pronouncements will play to U.S. legislators and world leaders.  He’s pledged to become “more presidential but then backs off, saying he’ll do it later.  Why fix what’s not broken and alienate voters who gravitate to him for the very reason that he tells it like he sees it?
So how might a Trump presidency affect your investment positions?  The biggest initial outcome would be uncertainty in the markets, and investors are generally known not to like uncertainty.  On the campaign trail, Trump has blasted Democrats and fellow Republicans alike.  He’s gone after reporters, world leaders, fellow candidates and their wives, even people with disabilities. He’s pledged to stop ISIS and illegal immigration, building his reputation on the idea of building walls, not tearing them down.  
Investors worry about the reaction he might carry over if he ever makes the presidency. His potentially divisive policies could cause a lack of legislative support  could bring about unrest, broken global alliances and economic decline.  His declared intention to repeal Obamacare would impact the healthcare industry and related stocks.  His take-charge stance on world politics could adversely affect trade with China, Mexico and others.  
On the other hand, his tax plan could lead to increased spending, which traditionally creates an improved economy and raises stock price .  His experience as an entrepreneur presumably makes him business-friendly, which is also seen as good for the market.
Analyst advice regarding the upcoming election and your investment position is to avoid panic selling or buying during this period of uncertainty. Panic selling and buying in the market can be devastating to investment positions at the long-term, but it's important to have your backup plan in place in case things goes the wrong way.
It’s important also to avoid overly market dependent especially for those over forty whom retirement is on the horizon in the next ten to twenty years,

Asset diversification that diverts some part of funds from paper assets such as stocks and bonds or futures and ETFs which are just portfolio investment to tangible assets such as Gold and silver is the key to guard against uncertainty.  Majority of investors make  diversification mistake of putting all investment fund into portfolio  investment, forgetting that the market on a period of volatility can fail at any moment. True diversification means holding tangible assets that resist forces that drive down the market and the dollar. A very good diversification should therefore include  Gold and silver that do offer investors a place to protect the buying power of their dollars over the long term.

Alldamoney '

features the latest political, financial,business and sports news to entertain and inspire ideas for business and lifestyle.

Start typing and press Enter to search