PHOTO: Future US President Donald Trump at CPAC in 2013. (Photo courtesy Flickr/Gage Skidmore)
A campaign operated much in the same way a sixth grader might run for class president has come to a conclusion. And, to the shock and dismay of millions, Donald Trump will be the next president of these United States.
The news rocked various sectors of the financial market, which led many to believe that we might have another Brexit level economic bombshell on our hands.
Of course, this would, in turn, lead to an ironic influx of International visitors from all over the world, eager to take advantage of a flailing dollar. It’s what we have seen immediately following the United Kingdom’s June referendum to leave the European Union.
CBC News reports the Dow Jones Industrial Average actually improved after futures initially plummeted 800 points following news that Trump would be the country’s 45th president.
As for the dollar, The Daily Mail reports, “The dollar clawed back its earlier two per cent loss after being abandoned by investors who flocked to safe haven currencies including the Japanese Yen and the Euro overnight.” According to the publication, the dollar had recovered and then improved by 1.1 percent, showing its resilience amid political uncertainty.
The Guardian quotes Conner Campbell from trading firm SpreadEx who explains: “The narrative seems to be that Trump’s presidential promises during his victory speech have reassured investors, allowing for the remarkable recovery seen this afternoon. The market may also be correcting the intensely negative gut reaction it had to the result, much as it did in the aftermath of the Brexit.”
Conversely, a similar populist-centric campaign took place in the United Kingdom this past summer, which saw the nation vote to separate from the European Union.
As TravelPulse reported back in October, Brexit has led to a rocky end of the year for the British pound, which, as of this writing, looms at $1.25. The soft currency means those craving a holiday to places like London can do so on what has been a rare window of tremendous value. A recent report from Eurostar points to a wave of French tourists who are taking advantage of the unique deal and are traveling into the UK through the channel at a remarkable rate.
For the United States, this kind of reaction would be an ironic twist considering what some consider to be xenophobic rhetoric coming from the Trump campaign. Essentially, a down dollar would mean travelers from all over the world would flock to the states in droves in a similar fashion that tourists are hitting UK shores. No wall, it seems, can keep cost-conscious tourists at bay.
However, it’s far too early to tell if Trump’s rise to the presidency means a Brexit-level deal is on the horizon.
Campbell continued, “Simply it is too early to tell what exactly President Trump has in store, something that may make for a rocky rest of November, even if today has confounded expectations market-wise.”
The good news, for the moment, is that it seems the market has corrected itself and is staving off a doom-and-gloom scenario as seen across the pond.
The Trump slump led to a brief bump on Wednesday morning, which may just mean the economy was nursing a hangover like the rest of us.