on your side

All Change in the United States!

23rd November 2016

The success of Donald Trump in the United States presidential election has caused considerable disquiet in many quarters. On the one hand Mr Trump has indicated a wish to see lower taxes and increased public spending, certainly on US infrastructure, both of which are positive factors for the investment markets.

However, his personal comments that peppered the many speeches he made during his campaign have dramatically polarised opinion – it remains to be seen whether these will materialise into actual policy. There is doubt, for example, about whether the building of a wall along the Mexican border is affordable and, if so, whether the Mexican Government can be “persuaded” to pay for it!

The United States economy is the largest in the world and the main US investment market forecast predicted a dramatic fall in the event of Mr Trump’s electoral success.

Although such a fall has not materialised, general concerns do remain, and it is likely that many more will become apparent once he is sworn in as President in January 2017.

On a more positive note, Mr Trump has made it clear that he is favourably disposed towards the United Kingdom and the “special relationship” which he believes still exists, quoting the warm relations between Margaret Thatcher and Ronald Reagan that existed many years ago.

New to the political mix is Nigel Farage, whose recent meeting with Mr Trump suggests the two men have a good relationship. Whether or not this translates into a formal diplomatic role for Mr Farage remains open to much doubt, however, as the UK Government continues to emphasise that Nigel’s services are not required, despite any potential benefit he may bring to the table.

Nevertheless, in the forthcoming Brexit negotiations and subject to the current litigation in the High Court, any enhanced business relationship between this country and the United States must surely be positive, and may indeed improve the chances of the UK being nearer the front of the US queue than the back, reversing our position as hinted at some time ago by the outgoing President Barack Obama.

As far as UK investors are concerned, with our base interest rate now reduced to 0.25%, income remains a priority and, as interest from cash investing remains very low, this should underpin investment markets. George Ide LLP’s financial specialists are expert in providing individually-tailored investment advicecontact the team for more information.

John Atkinson. Chartered Wealth Manager

Business, General, George Ide, Investment, News, Private Client
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