Donald Trump and the Stock Market

Article by Theo Vermaelen, Professor of Finance, INSEAD / Program Advisor, Amsterdam Institute of Finance
Portfolio Manager, PV buyback USA

Predicting the stock market consequences of a political event is difficult, as was demonstrated recently. Many so called experts predicted disaster if Trump got elected. The Financial Times and Citigroup predicted a 5 % stock market decline as well as a collapse of the dollar. Bridgewater, the largest hedge fund in the world even predicted a 10.4 % decline and a 4.9 % surge in the Euro.  All of them predicted an increase in volatility because of the unpredictability of Donald Trump.

28 Nov 2016