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Klingman Insights
November 9th, 2016
Good morning. Undoubtedly, most of you, like us, had a long night following the election results. Much will be written today and in the coming weeks regarding what the results mean for our country and our position in the world, and much of that analysis will be thoughtful and accurate. In our opinion, many will read more into this election than is actually there. The reality is both parties nominated candidates that were very unpopular with the majority of people in this country and that made the outcome of the election that much more unpredictable.
As we expected and as we discussed in our call a few weeks ago, markets are reacting negatively in the short term to a Trump victory because of the uncertainty of some of his stated policy objectives. We expect to see considerable volatility today and over the coming weeks as the markets try to sort out how much of some of Trump’s more extreme positions on trade and immigration can work their way into actual policy.
The question for the markets, and our country, is whether Donald Trump the President actually governs as the extremist populist campaigner or the pragmatic businessman that wants to change Washington. We will watch closely to see the people that he surrounds himself with and potential future cabinet members as an indication of which direction he intends to lead.
With Republicans appearing to be in control of the Presidency, the Senate and the House of Representatives, we believe there will be significant changes in tax policies and regulation. Clearly Trump is not the typical Republican and it is still uncertain how closely the executive branch and Congress will work together, but there are some significant opportunities for legislation that would be viewed positively by the financial markets.
We will continue to watch developments closely over the coming months and communicate our views. If you have any specific questions, don’t hesitate take to reach out to us or anybody on our team.
The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Gerald Klingman and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected.