Patience Will Protect Investors from Political Uncertainty

Episodes of volatility always create opportunities for investors, but they nevertheless contain dangers for investors too - and Trump's Presidency is no different

Dan Kemp 9 November, 2016 | 3:03PM
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Stock markets have been jolted by the Trump victory resulting in increased volatility across the globe. While such episodes always create opportunities for investors who are prepared to think independently and adopt a long-term, valuation-driven approach, they nevertheless contain dangers for investors too. Chief among these is the temptation to react too quickly or with too much confidence in the wake of the outcome of this significant event.

The key question on investors' lips is whether they should buy, sell or hold

Let us be clear, while these are uncharted waters politically, volatility in capital markets is nothing new and on this occasion – as in the past – prudence and patience will win. For this reason, we favour research over reaction and urge other investors to do the same.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Dan Kemp

Dan Kemp  is Chief Investment Officer, Morningstar Investment Management EMEA

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