Explore the Category
With Donald Trump emerging victorious in the US presidential race, many investors may be thinking: Now what? Here, Ed Perks, CIO of Franklin Templeton Equity, and Christopher Molumphy, CIO of Franklin Templeton Fixed Income Group, offer their initial take. One thing they agree on: there could be continued market volatility ahead.
The US Presidential election takes place on Tuesday, 8 November 2016. It appears as though a victory for Democrat Hillary Clinton (without full control of Congress) is likely, but then again predicting political outcomes is hazardous. Remember Brexit?
We’ll soon know who the next US president will be. Markets have already clearly signalled their preference: every uptick of support for Donald Trump in opinion polls has been met with a sell-off, and the S&P500 has fallen to its lowest level since July as the polls narrowed. South African equities have followed the US with the JSE All Share dipping to a level last seen after the Brexit vote.
With concerns around the country’s current uncertain political and economic outlook intensifying, markets are bracing for a possible sovereign downgrade. While a downgrade will not be good news for the South African economy, in a number of instances the financial markets appear to already have discounted the event in prices.
If you had to choose one approach to protect your hard-earned investment cash from today’s market madness, which would it be?