With less than a week to go before one of the most contentious presidential contests concludes, some market participants are ignoring the noise, but many are fretting over shocks to equity markets and the potential fallout from protectionist trade policies.
Rathbones asset allocation strategist Edward Smith has argued that investors should “pay close attention to the insidious creep of protectionism, as US politicians and elsewhere look to harness the disenfranchised.”
Old Mutual Global Investors CEO Richard Buxton is predicting a Donald Trump victory, and a subsequent aggressive shift in global fiscal policy.
Lombard Odier macro strategist Bill Papadakis suggests the economic outlook under a Hillary Clinton presidency could “turn out to be somewhat better than pure status quo,” while a Donald Trump victory would spell significant uncertainty for the United States and possibly globally.
The prospect of a more protectionist US and the continued strength of the dollar has seen emerging markets sell off in the wake of Donald Trump’s election to the White House. But, there remain telling reasons why investors should not write them off in 2017.
