Following a stark market response to what was an unexpected result, markets remain volatile. Political uncertainty is at record levels in the UK which impacts business investment. See my interview on Bloomberg TV's European Close show yesterday where I discuss the market impact of the Brexit vote, how imported inflation could hit consumption, and which areas of the market have been worst hit, including sterling and UK property.
Let’s assume Trump wins or at least the market re-prices his chances of winning. What would a President Trump do and how would asset prices respond? It’s a question worth asking, but not an easy question to answer given that Trump describes himself as ‘totally flexible on very, very many issues’.
Seven years into this bull market, how is it that equities continue to rally? I share investors' scepticism, but not because of the duration of the bull market or the size of the rally. I struggle to find reasons to be bullish on the two fundamental drivers of equities: earnings and valuations.