As you all probably know Donald Trump has been recently elected as President. As the world holds it breath to see what happens next, some of us wonder what does that mean for our money. One thing is immediately obvious, if you bet on Trump in the election, you could have won $1.5 million. This is the amount one lucky Betfair user obtained on the night of the election. But that doesn’t affect me? you say. Well the exchange rates must?
Well, if you live in the UK you’ll know the pound has been dropping since Brexit. However the Pound is still stronger than the Dollar. If Donald strikes a trade deal with the UK, as he promised the pound will increase in value. However many British experts have warned the UK not to expect favors as he is focused on “Making America great again” and has criticized free trade deals.
These warnings are in-spite of Trump’s trade adviser Dan DiMicco claiming that the UK was Americas “friend”, that they would get priority and that they quit the EU for good reasons.
What about UK stocks? Well, the London stock market dropped by 3.2% the day after the Brexit vote. The Pound had one of its largest one day declines dropping by 9% to $1.33. However the UK stock market has since rebounded.
But I live in the US, you might say. Well, when Donald was elected, the Dollar plunged in comparison to other currencies. However, on going problems with the Sterling helped the Dollar back onto its feet.
US stock markets have dropped since Donald was elected. However it is statistically beneficial for the States stock markets for a democrat to be in power. There is an average gain 0f 9.7% compared to an average gain of 6.7% if a Republican is in power.
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