Stewart Smith

There have been some reasonably significant short-term responses to the US election result (strong US equity returns, weak Asia/EM returns, rises in US bond yields, fall in gold, etc.), but we await the detail before we can make any reasoned judgements.

Indications of initial US policy are that they could re-ignite inflation, and this may force the US Federal Reserve to consider increasing interest rates, something that is not on investors' radar and would be received negatively by most asset classes.

Growth in Europe is weakening, and there are short-term worries about UK growth following the budget, but the European Central Bank has cut rates again, and the Bank of England could surprise with a December rate cut. All this creates an uncertain outlook for many asset classes, although this creates opportunities as well as bringing risks.