Trump’s threat to impose tariffs of up to 45% on goods from China and Latin America could weigh heavily on emerging markets – particularly if infrastructure spending proves inflationary and drives up US interest rates, triggering capital outflows. “Still, all is not lost,” said Merryn Somerset Webb in the Financial Times. In fact, you may have a better chance of making positive returns from some of these markets than from US stock exposure. “Already far from cheap”, US stocks “are priced for perfection in a very imperfect world”. Given that Trump and Vladimir Putin “seem keen to get along”, the obvious emerging market to look at is Russia – long in a bear market, now rising.
London property boost?
Global uncertainty triggered by Trump’s victory, coupled with forthcoming European elections, could well put London property “back on the map”, said Carol Lewis in The Times. The weakening of sterling in the aftermath of Brexit has already seen an influx of international investment cash, according to Naomi Heaton, CEO of London Central Portfolio. “This could increase the momentum.”
Traders react to the election result