Latest / Early Edition with Ryan Bridge / 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 · Early Edition with Ryan Bridge

• 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, They are fairly considerable.
• 0:11
  Speaker 2: I mean, if you look at some of the stock
• 0:12
  Speaker 2: market reactions that we've seen this morning in the US,
• 0:17
  Speaker 2: I think if they kept it up, they'd be on
• 0:19
  Speaker 2: the Dow, for example, I think the fifth biggest points
• 0:21
  Speaker 2: movement in history. But to be fair, they're not the
• 0:25
  Speaker 2: biggest percentage shift, So I think really what you're seeing
• 0:28
  Speaker 2: is that, yes, there's definitely a strong market reaction. There's
• 0:31
  Speaker 2: probably still going to be some volatility in the market
• 0:34
  Speaker 2: as everyone tries to pick not only today but over
• 0:37
  Speaker 2: the next couple of weeks and up until the twentieth
• 0:40
  Speaker 2: of January when President elect Trump is sworn in, what
• 0:43
  Speaker 2: exactly is going to happen first, Because this is I
• 0:46
  Speaker 2: think a big challenge for everyone looking at the economic
• 0:50
  Speaker 2: ramifications of the change in president is what of the
• 0:53
  Speaker 2: many economic policies is he going to pursue first. Is
• 0:57
  Speaker 2: it going to be tax changes, Is it going to
• 0:59
  Speaker 2: be ten tariffs, Is it going to be deregulation? Is
• 1:02
  Speaker 2: it going to be them all at once? Because there
• 1:04
  Speaker 2: are quite a lot of options on the table where
• 1:06
  Speaker 2: they do have very different impacts on quite different parts
• 1:10
  Speaker 2: 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 worth while sort of sticking around to that
• 1:51
  Speaker 2: and not making any rash decisions. What's also I think
• 1:54
  Speaker 2: been interesting in some of the trading this morning has
• 1:58
  Speaker 2: been just how different some of those different parts of
• 2:00
  Speaker 2: the economy have gone. So you've seen a number of
• 2:03
  Speaker 2: bank stocks and similar that have increased on the view
• 2:06
  Speaker 2: that 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.
• 2:34
  Speaker 2: For more from Early Edition with Ryan Bridge. Listen live
• 2:37
  Speaker 2: to News Talks at b from five am weekdays, or
• 2:40
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