Latest / The SME Stream / Brad Olsen: Infometrics Principle Economist on the impact of Trump's success on investors, international markets

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Brad Olsen: Infometrics Principle Economist on the impact of Trump's success on investors, international markets · The SME Stream

• 0:00
  Speaker 1: Markets are reacting strongly. The Dow has surged, Bitcoin going nuts,
• 0:04
  Speaker 1: the US dollar is stronger, Brad Olsen's with US bread.
• 0:07
  Speaker 1: How strong are these movements.
• 0:09
  Speaker 2: They are fairly considerable. I mean, if you look at
• 0:12
  Speaker 2: some of the stock market reactions we've seen this morning
• 0:15
  Speaker 2: in the US, I think if they kept it up,
• 0:18
  Speaker 2: they'd be on the Dow, for example, I think the
• 0:20
  Speaker 2: fifth biggest points movement in history. But to be fair,
• 0:25
  Speaker 2: they're not the biggest percentage shift, So I think really
• 0:27
  Speaker 2: what you're seeing is that, yes, there's definitely a strong
• 0:30
  Speaker 2: market reaction. There's probably still going to be some volatility
• 0:33
  Speaker 2: in the market as everyone tries to pick not only
• 0:36
  Speaker 2: today but over the next couple of weeks and up
• 0:39
  Speaker 2: until the twentieth of January when President elect Trump is
• 0:42
  Speaker 2: sworn in, what exactly is going to happen first, Because
• 0:46
  Speaker 2: this is I think a big challenge for everyone looking
• 0:49
  Speaker 2: at the economic gramifications of the change in president is
• 0:53
  Speaker 2: what of the many economic policies is he going to
• 0:56
  Speaker 2: pursue first. Is it going to be tax changes, Is
• 0:59
  Speaker 2: it going to be ten tariffs, Is it going to
• 1:00
  Speaker 2: be deregulation? Is it going to be them all at once?
• 1:04
  Speaker 2: Because there are quite a lot of options on the
• 1:05
  Speaker 2: table where they do have very different impacts on quite
• 1:09
  Speaker 2: different parts of the economy.
• 1:11
  Speaker 1: If you're an investor right now in New Zealand looking
• 1:13
  Speaker 1: at the stock market, should you be paying too much
• 1:16
  Speaker 1: attention or is this going to fluctuate for the next
• 1:18
  Speaker 1: couple of months until we get certainty on those things.
• 1:21
  Speaker 2: I mean, I think it will fluctuate quite a bit
• 1:24
  Speaker 2: because of how all of these different trends are playing out,
• 1:27
  Speaker 2: and I expect Look, if you're a professional investor and
• 1:30
  Speaker 2: that's your job, then yeah, you'll be paying a lot
• 1:32
  Speaker 2: of attention to it. If you're an average key we
• 1:34
  Speaker 2: worried about your Kiwi saber, I don't know if i'd
• 1:36
  Speaker 2: be immediately reacting right this second. In fact, i'd probably
• 1:39
  Speaker 2: again just be there's quite a few movements coming through
• 1:43
  Speaker 2: and if you've already taken the idea that you're happy
• 1:45
  Speaker 2: enough with a bit more risk in your investments, then
• 1:48
  Speaker 2: it's probably worthwhile sort of sticking around to that and
• 1:51
  Speaker 2: not making any rash decisions. What's also I think been
• 1:55
  Speaker 2: interesting in some of the trading this morning has been
• 1:58
  Speaker 2: just how different some of those different parts of the
• 2:01
  Speaker 2: economy have gone. So you've seen a number of bank
• 2:04
  Speaker 2: stocks and similar that have increased on the view that
• 2:06
  Speaker 2: there will be a bit more deregulation in the US.
• 2:10
  Speaker 2: Number of tech stocks as well that have seen similar trends,
• 2:13
  Speaker 2: but a number of ev makers as well that have
• 2:15
  Speaker 2: come back except for Tesla. So again, lots of moving parts,
• 2:19
  Speaker 2: lots of different elements, big questions as well for the dollars.
• 2:22
  Speaker 1: Yeah, interesting you mentioned Tesla. I'll get to Elon Musk
• 2:25
  Speaker 1: in a few moments and just how much money he
• 2:27
  Speaker 1: made overnight. Brad Olson Informentric's chief executive and principal economists
• 2:32
  Speaker 1: with US