MFS Investment Management:
In a shocking development reminiscent of Brexit, Donald Trump, the Republican nominee, was elected the forty-fifth president of the United States on Tuesday, 8 November. In addition, Republicans maintained control over both houses of Congress.
Trump’s unexpected victory brings with it a great deal of policy uncertainty, given his lack of specificity during the presidential campaign. Judging by the tone of his campaign, one can surmise that foreign trade will likely be a major focus of the new administration. It is quite unlikely that the Trans-Pacific Partnership will be ratified against thepresent backdrop, while the North American Free Trade Agreement (NAFTA) could be renegotiated or even abandoned. Uncertainty over immigration policy is likely in the near term, which could potentially impact labor markets.
