The 2016 U.S. Presidential Election outcome yielded not one, but two surprises for the nation and the world last week. The first, of course, was an unexpected Republican sweep in both the White House and in Congress: Donald Trump has been elected 45th President of the United States while the GOP retained control of the House of Representatives and gained a majority in the Senate.
The other surprise has been the market reaction. Prior to the election, investor surveys and models projected a plunge in the stock market and a rally in the bond market in the event that Donald Trump were to win the election. And yet, so far, we’ve gotten the exact opposite—higher stock prices and lower bond prices.
We’ll leave the wherefores and whys to the political scientists, and will instead focus on the number of policy questions that have potential market impact as we look to next year. Back in September, our Investment Team held a webinar to explore some of these questions further, but with the election now concluded, we felt it only appropriate to reassess our current position. And so, on Thursday, Nov. 10, we hosted a Post-Election Update webinar, in which we sought to answer the following questions:
- What are the potential policy implications that will matter for financial markets?
- What is the latest 2017 market outlook?
- What will a Trump presidency and a GOP-controlled congress mean for tax policy, particularly from a wealth and tax planning perspective?
Joining me were Paulina Mejia, Head of Wealth Strategies for Atlantic Trust, as well as H. Arthur Graper, senior relationship manager. The webinar yielded a number of questions and thoughtful discussion, and we invite you to watch the replay for our insights into the key issues to watch in the weeks and months ahead. To watch the webinar replay, click the button below:
For further market insights into the election outcome, read my election and market update, or Paul McPheeters’ piece on the election outcome’s potential impact on the MLP sector. For additional questions, please contact your Atlantic Trust advisor.
Dave Donabedian is chief investment officer of Atlantic Trust, serving in that capacity since 2009. His responsibilities include chairing the Asset Allocation Committee, as well as providing oversight of internal investment strategies and the external manager selection platform.