One of the key questions this Election Day for investors is not only who will win presidency, but what will happen to financial markets as a result.
Global markets are hedging hard for Democratic nominee Hillary Clinton. Should the election swing in Republican nominee Donald Trump’s favor, there could be a “double whammy negative impact,” Nigel Green, founder and CEO of DeVere Group, tells The Daily Caller News Foundation.
DeVere Group is one of the largest independent providers of specialist global financial solutions to international and local affluent, high-net-worth clients in the world. The firm has a global network of more than 70 offices with $12 billion under advisement and services over 80,000 clients.
Green says that since the markets are betting on a Clinton victory, they should react favorably if she edges out a victory on Tuesday evening. If Trump wins, however, there “is much more of an unknown and therefore will create uncertainty and the markets will react accordingly,” Green explains to TheDCNF, although these are just predictions and no one knows for sure.
Speaking to this point, Green cautions against anyone ardently predicting a Clinton victory. “Complacency and full assumptions must be avoided,” Green says, adding that, “markets priced in a ‘Remain’ win in the Brexit referendum and got it wrong.” The British Pound was trading at a solid 1.5 against the dollar June 23, the day of the Brexit decision.
In the event of a Trump win, “sell-offs will be compounded by the markets having priced in a Clinton victory and were wrong. Plus the markets tend to have knee-jerk reactions to these kind of events,” Green tells TheDCNF.
“Whether Clinton or Trump wins the keys to the White House, there will be risks to avoid and major financial opportunities from which to take advantage. But for now, only the brave would take major positions each way,” he concludes.
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