What should investors expect from Trump’s presidency?

Investors should expect volatility in global financial markets in the first 100 days of Donald Trump’s presidency, said Tom Elliott, International Investment Strategist at independent financial advisor deVere Group.

Mr Elliott warned investors that “Market volatility should be expected over the next 100 days, the period in which new administrations like to lay down their mark for the rest of their term of office.”

Trump entered presidency with the aim of making ‘America Great Again’. However as Obama left the White House with the US economy growing at 3.5 per cent, the fastest rate of growth of any developed economy bar Canada, and unemployment at a modest 4.7 per cent.

“It is unclear in what sense America is not great, at least in terms of the economy”, commented Mr Elliott.

“The type of fiscal stimulus policies that Trump has promised, such as lower taxes and infrastructure spending, can make up for shortfalls in public spending and so stimulate a depressed economy. Yet the US is not suffering from a depressed economy, and inflation may be the result.

“Furthermore, with the U.S government deficit likely to hit its current $20 trillion mark in March, thanks to a continuing large budget deficit (of 3.2 per cent of GDP), the Treasury market may well take fright at the prospect of both oversupply and inflation should Trump try to enact such a policy.

The Federal Reserve has already begun to take Trump’s intentions into account, indicating that it may tighten monetary policy in 2017 faster than originally thought.

“In recent days it has speculated that rate hikes may be accompanied by a shrinking of its balance sheet. This would shrink the money supply, forcing up interest rates.”

What lies ahead for property investors post-Brexit?

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Theresa May’s high-profile speech outlining her stance on the Brexit negotiations is likely to have a wide-ranging impact on all sectors, as investors plan for the impact of a ‘hard Brexit’.

The property sector in particular will be looking for suggestions as to what Britain will look like post-Brexit, with investors possibly putting off buying until there is more clarity.

Agate Freimane, Senior Investment Director at online real estate investment platform BrickVest, said of Theresa May’s Brexit plan:

“Theresa May’s announcement on the UK potentially leaving the single market will be well received by opportunistic investors in the UK and European real estate market and it will undoubtedly trigger more buying and lending opportunities.” “Through our online real estate investment platform, we’re seeing strong demand for UK real estate, especially in the form of debt like investment opportunities which offer good risk adjusted returns in a volatile market environment.” “Within real estate, we are likely to see the highest level of volatility from the office sector. Many of the international firms currently headquartered in the UK may put on hold any decisions over their long term office space requirements. If the UK no longer gives these firms access to the European market, they may need to spread their staff across multiple locations to more efficiently access both the UK and the European market.”

Theresa May to take Britain out of the single market as Brexit negotiations begin

Prime Minister Theresa May outlined her plan for a Britain outside the European Union in a speech on Tuesday, saying that it would not be part of the single market but would endeavour to work with European States in many policy areas. The pound sunk to three-month lows in anticipation of the speech, but steadied once the Prime Minister began speaking. Addressing an audience at Lancaster House in London, May made it clear for the first time that she would be negotiating for a ‘Hard Brexit’. “I want to be clear: What I am proposing cannot mean membership of the single market,” May said, but before continuing to state that she would like to create a new deal with Europe: “This agreement should allow for the freest possible trade in goods and services between Britain and the EU’s member states. It should give British companies the maximum freedom to trade with and operate within European markets, and let European businesses do the same in Britain.” At the end of the speech, she warned Europe that it would be worse off than Britain if not trade deal was reached. Sterling retreated again on Wednesday, and is currently down 0.94 percent against the dollar and 0.61 percent against the euro.

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Critical accommodation undersupplys

Stoke’s two universities are currently home to 22,700 students, while there are only 4,779 purpose built student units (including university-owned halls of residence).

This means that just 21% of the city’s students can acquire space in their preferred accommodation form.

What’s more, only 7% of students can access purpose built student en-suite or studio accommodation – with only a tiny number of studios available citywide.

Articles are general information and not a recommendation to act. Please seek independent investment advice before entering into any financial transaction. By entering into any financial transaction that involves securities, derivatives or property puts your capital at risk. The UK Investor Magazine is not regulated by the Financial Conduct Authority and will not accept any liability for any action taken after using this website in any form. By entering your details

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Articles are general information and not a recommendation to act. Please seek independent investment advice before entering into any financial transaction. By entering into any financial transaction that involves securities, derivatives or property puts your capital at risk. The UK Investor Magazine is not regulated by the Financial Conduct Authority and will not accept any liability for any action taken after using this website in any form. By entering your details

By entering your details you agree to be contacted by UK Investor Magazine and the company operating this investment opportunity regarding this opportunity specifically and similar investment opportunities and news.

JD Sports upgrades outlook, leads FTSE350 higher

JD Sports (LON:JD) shares opened at 347p Thursday morning up 6.5 per cent from the previous days close as the self proclaimed “King of Trainers” said profits before tax will be up to 15 per cent more than previous consensus views of £200 million for the financial year ending January 28th.

The group includes not only the namesake sports shops, but also outdoor retail chains such as Scotts and Blacks. Growing demand in recent years for branded sportswear has seen JD Sports overtake discount rival Sports Direct as the country’s biggest sportswear retailer by market value.

With full year results now scheduled to be released on the 11th April, Peter Cowgill, Executive Chairman commented “I am delighted to report that we have maintained our excellent momentum from the first half of the year. Whilst we acknowledge that it would be unreasonable to expect like for like sales growth to be maintained at recent levels for a fifth consecutive year, we are confident that both domestically and internationally, our unique and often exclusive sports fashion premium brand offer provides a solid foundation for future development.”

In morning trade shares reached a high of 357.90, up 9.7 per cent from the previous days close, and up 3.1 per cent from the open this morning. City analysts are indicating further potential upside with Investec reiterating their bullish stance with a price target of 415p a share, and Cantor Fitzgerald and Peel Hunt confirming their upside targets of 380p this morning.

Daylui crowdfunding to revolutionise the sharing economy

Rental platform Daylui is crowdfunding on Seedrs to disrupt the sharing economy, allowing users to rent day-to-day items and make money on anything from brand new devices to unwanted Christmas presents. As demonstrated by the rise of industry giants such as Uber and Airbnb, who all have ‘sharing’ as their main focus point, the sharing economy is a lucrative market. However, when it comes to renting day-to-day items, no available platform pops to mind; enter Daylui, the space to rent cameras, consoles, bikes or any items that you don’t use on a daily basis. Over the years people tend to accumulate objects that remain unused. Daylui is the opportunity to give them a new life while making some money on the side, recouping the cost of the item. Daylui’s peer-2-peer marketplace is based in the UK and was launched at the beginning of 2016. The platform has just announced a crowdfunding campaign with Seedrs to raise £115,000. Daylui is a web platform that allow people to lease and rent items. Right now its presence is in London, with a steadily growing base of users and items but with the Seedrs campaign Daylui aims to expand throughout the UK and, later, in Germany. With a successful crowdfunding campaign under its belt, Daylui hopes to increase its user-base and its reach, create dedicated iOS and Android apps and improve both user interface and security measures. For more information and to get involved in the campaign, visit their campaign page on Seedrs.  

Next Retail reports another dire set of results and warns on outlook

Next (LON:NXT) shares opened down 15% briefly trading down 15 per cent in early trade Wednesday after it warned that profits would be at the lower end of guidance and revised down forecasts for the future after “difficult” Christmas trading. Shares in Next are now down almost 50 per cent from the highs of £81,75 reached back in December 2015. The heavy selling was fueled by a continued decline in Q4 sales prompting the retailer to state “we expect the cyclical slow-down in spending on clothing and footwear to continue into next year” The report also highlighted two Brexit based factors which could further depress sales in the future; potential squeeze in general spending as inflation erodes real earnings growth, and the collapse in the value of the pound resulting in increased garment cost pricing moving forward. “In these circumstances, we are budgeting for NEXT Brand full price sales growth (at constant currency) in the year to January 2018 to be between -4.5% and +1.5%. The mid-point of this range is -1.5%, which is marginally worse than the current year’s performance”. The update also warned of several inflationary pressures regarding the cost base; the national living wage, business rates revaluations, Apprenticeship Levy and energy taxes are all due to further increase costs – the combination of falling sales and increasing costs prompted the warning that profit before tax for the FY to Jan 2018 will be between 14 per cent at the lower band and 2 per cent lower in a best case scenario. Helal Miah of the Share Centre said “With a 7% drop in Christmas sales, this is having on knock-on impact on the rest of the sector and for the coming weeks,” Given rising inflation and wage pressures, it’s going to be a “challenging” and “very tough” environment where margins will continue to be squeezed, he says as Brexit uncertainty will weigh. The full report can be reviewed by clicking here.

Here are the top three risks in 2017 for investors

2017 looks set to bring positive news for investors, but key risks include Donald Trump’s policies, the French and German elections and the impact of lower oil prices. Nigel Green, founder and CEO of deVere Group, one of the world’s largest independent financial advisory organizations, warns that the Federal Reserve’s reaction to events in the US will be the biggest risk to investments in 2017. Green said: “It is likely that 2017 will bring good news for investors – but they mustn’t be complacent. They must remain alert. We’re now in a very different landscape to where we have been for the last six or seven years and this shift could impact investor returns. “As the world changes, investors will need to change with it to capitalize on the many opportunities that will be presented and mitigate any potential risks.” He continues: “The biggest threat to investors are the changing expectations for growth, inflation and interest rates in the U.S, which remains the world’s largest economy. “Even before he takes office, the data and anecdotal evidence suggests that the U.S. economy has been given an initial boost from the forthcoming Trump presidency. Considering the likelihood of a stimulus package when he takes office, and given the already near full employment rate, inflation could go higher than the Fed’s goal of 2 per cent. “Should this happen, the Fed could perceive the inflationary pressures as leading to an overheating of the economy and raise interest rates quicker than markets anticipate to cool it down.” He goes on to say: “The second major issue of which investors should be conscious are the forthcoming elections in France and Germany. Nationalist and far right are seeking to establish themselves in government in these countries. Should this happen there could be an existential crisis in the EU as borders could be re-established and trade flows impeded in the world’s biggest single trading bloc. “The third risk is that the decline of the oil price from the highs of a few years ago will continue to have a significant impact on the finances of oil exporters. Mr Green concludes: “The outlook for 2017 is strong, but investors should avoid complacency to make the most out of an evolving investment landscape and build wealth.”

Key 2017 Market Themes and 10 Investment Ideas

As we did in our 2016 Outlook, we begin the 2017 Outlook with a run-down of key themes and assets we pointed to last year and review how those predictions played out in this year’s tumultuous markets.

We then present our key market predictions and forecasts for 2017, outlining marco-economic trends and the individual shares we have allocated to benefits from these themes.

Request the 2017 Outlook to discover:

⇒Review of 2016 themes and investment ideas

⇒Macro-economic themes for 2017

⇒Geographical targeting of developed and emerging markets

⇒Individual shares to benefit from political and monetary policy

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