Trump’s win was as unlikely as snowfall in Sahara Desert. But his shocking win has got everyone reeling out of control, especially investors. Investors are now confused as to what to do with their money. Should they invest or should they take it out?
Trump’s view on the economic growth
Trump, after being selected as the next president of the was United States, said that the American economy will double in terms of growth. This might be an obvious statement from someone who just became the president of the country with the third largest economy in the world. But many are surprised because earlier, during his campaign, Trump had shown no interest whatsoever towards the economy. In fact, he said he didn’t have a plan at all for the economy. But now he does and many economists believe that it will be a plan with lots of promise.
Now, on the other hand, everyone knows Trump’s radical views towards immigrants. In the past, his immigration plans have cost good business deals, but if he walks in the same direction, it might hurt the U.S. economy badly. It will be interesting to see how things turn out in the next one year.
Every election creates panic among investors. It was the same with this year’s elections. Initially the markets at a loss with S&P 500 futures going down by 4% but the situation has improved now. U.S. stocks are slowly improving and It’s only a matter of time when things get back to normal. Financial professionals have shown the example of Brexit to assure investors that such panic only lasts for a short time. Following U.K.’s exit from the European Union, the Dow dropped by 1000 points and by another 400 the next day. But in the next four days the losses were recovered.
The rational thing that investors need to do is to stay focused and make logical decisions.
Investment lessons from Trump
Love him or hate him, but you can’t ignore him. Donald Trump has proven that if you stand your ground nothing is impossible. That being said, investment is like politics. You never know when you might have to face a bad situation. It’s better to be prepared for everything. Investment is sometimes about choosing the less bad between two situations. During voting, candidates choose the candidate that will cause the least amount of damage. Or, at least that is what candidates expect.