There were fears that stock markets would plunge with the election of Donald Trump as the 45th President of the United States, but the markets actually surged yesterday.
Chief Investment Officer At SunLife Global Investments Sadiq Adatia says at first there was a fear of the unknown, but optimism grew when he spoke after his win, “People realised the Donald Trump was a big question mark. They didn’t know exactly what he was going to do for the American economy, and what his strategy really was. They got a little comfort when he actually won and he delivered his acceptance speech. He seemed to be a lot more diplomatic.”
Adatia says in that speech he talked about cutting taxes and spending on the economy, which would mean growth and in turn, Canada would benefit as a result.
But he also adds that there could still be trouble ahead, “For two reasons, the North American agreement could come up for review and that would mean a worse outcome for Canada than what we have today. If there is any disruption in the American economy, that will hurt us as well. So Canada does have to watch things very carefully.”
