Steve Ruffley on the US election result
One of my favourite sayings when I’m talking about the markets is, ‘Trading is not about being right, it is about being right at the right time’.
As with Brexit, the world’s top analysts got the US election spectacularly wrong. Like it or loathe it, Donald Trump is the 45th president of the USA. Many longer-term investors will accordingly have been burnt by the strong directional moves we have already seen across the major asset classes as a result of this.
Why the movement? Fear. Fear of the unknown. Clinton was seen as a proven political entity whereas Trump is just a showman.
Trump victory shakes up the markets
The benefit of spread betting is that you can access a wide variety of markets quickly. You can take advantage of the huge uncertainty and volatility in the markets to make small short-term trades. The less time you spend in a trade, the less risk you take.
Use your overall opinions to trade short-term moves around key markets that are trading directly as a result of the US election result. However, please bear in mind that volatility increases your potential risk as well as your potential reward. You can lose more than your initial deposit.
In my view, gold will want to test higher above £1300 and the US dollar will likely weaken. I expect it to fall to 1.262 against the British pound and 1.140 against the euro.
Chief Market Strategist, Intertrader
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The content of this article is the personal opinion of the author and not Intertrader. You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.