US Election result and market impacts
By Simon Mather, General Manager, Investments
Despite the unexpected election of Republican nominee Donald Trump as the 45th President of the United States on Tuesday, 8 November, financial markets staged a strong recovery to finish the week in positive territory. Locally, markets also took their lead from overseas recovering losses from the previous day.
At AustSafe Super, we understand that financial markets are affected by changing global events and the objective of our MySuper (Balanced) investment option, and other diversified options is to cushion against market volatility.
This reaction to the election is likely to settle in the short-term as the economic outlook of the US, and it’s impact globally is better understood.
Economic outlook post US Election
In the short-term, it is going to take time for the new Administration’s agenda to become clear, let alone become federal policy. In the medium term, President-elect Trump’s protectionist agenda may weigh on global growth if pursued, with looser global fiscal policy potentially providing some offset. It’s likely that the global economy will continue on its present path, which should provide some confidence for investors.
This election result has strengthened the sense that populism is on the rise globally and concerns are now likely to focus on how this will influence the forthcoming European elections in 2017.
At AustSafe Super, we think it’s important for our members to deal with short to medium term uncertainties in the local and global economies by maintaining a long term outlook and a diversified portfolio of assets. Our MySuper (Balanced) investment option, and other diversified options have exposure to a range of assets, including both domestic and globally, not just the share market, these assets have both growth and defensive characteristics, which provide a measure of protection against share market falls. AustSafe Super has been holding a higher level of cash over the last Quarter and will continue to look for opportunities.
AustSafe Super offers members a wide range of investment options. If you don’t make a choice your money is invested in the My Super (Balanced) investment option. The option provides members with diversification across a range of asset classes with a balance of risk and return. The objective of the option is to achieve higher return over the longer term.
If you’d like more information about the investment options available within AustSafe Super please visit our Investment Performance section on our website or contact us on 1300 131 293.
This article has been prepared and issued by Austsafe Pty Ltd the Trustee of AustSafe Super. While it has been prepared with all reasonable care, no responsibility or liability is accepted for any errors, omissions or misstatements however caused. All forecasts and estimates are based on assumptions. If those assumptions change, our forecasts and estimates may also change. The opinions in this article are those of Simon Mather, Head of Investments.
This article contains general information only and does not take into account your individual objectives, financial situation or needs. You should consider the information in this article in light of your own circumstances. You may also wish to seek the advice of a qualified financial planner. Austsafe Pty Ltd ABN 96 010 528 597, AFSL 314183 is the Trustee of AustSafe Super ABN 92 398 191 503.