The U.S. elections are over. What does this mean for your investments?

Woman voting at her polling location.

Nearly 600 days after the first candidate threw his hat in the ring, the U.S. presidential election is decided. Donald Trump will be the next president. And, as expected, the effects of the electoral outcome are dominating the headlines.

That’s why we asked our economists to weigh in and answer the question, “What might this mean for markets and investments?”

The U.S. economy is strong

Going into Election Day, markets were largely anticipating a Clinton win, so it is no surprise they could be under pressure with the announcement of Trump as the U.S. president-elect, according to our economists.

While short-term market volatility is likely, Principal chief global economist Bob Baur believes the current strength of the U.S. economy will help prevent any significant market downturn. Additionally, according to Principal senior economist Robin Anderson, if the value of the U.S. dollar declines as a result of Trump’s win, it would  be a net positive for the U.S. economy and export sector.

Despite the current market noise, Baur encourages people to stick with it and maintain a long-term view until more is known about what a Trump presidency will mean for the U.S. economy.

A Trump presidency

Economists will be watching to see how statements made by Trump throughout the campaign manifest into economic policy.

Global trade and immigration were a significant part of his platform during election season and would have an obvious impact on the economy and markets if his positions turn into policy, Anderson says. For example, she believes that if Trump is able to push through some of the tariffs he proposed during election season, it could open up frontier markets like Vietnam for U.S. companies. 

What’s an investor to do?

Listen as Bob Baur, chief global economist, shares his insights on the key takeaways for investors following the election of Donald Trump to White House.

How does the surprise US election outcome compare to Brexit?

Global investment strategist Seema Shah breaks down why the surprise outcome of the U.S. presidential election didn’t turn into another Brexit for the markets.

What will happen to interest rates now?

Global investment strategist Seema Shah discusses what to expect from Central Bank policy around the world following the U.S. elections.

More election insight

Post-Election Day and beyond, our experts are watching the markets and the headlines. Check out their thoughts on considerations for investors.

Tips for keeping a cool head

Instinct often causes people to make financial decisions emotionally—not logically. You can rise above those emotions to make smart, measured investment decisions.

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