Finance With Eamonn Dorling

Impact Of USA Election On Finances by Eamonn Dorling

At the time of writing it has become apparent who the next President of the USA will be after a cost that is reputed to be about $13 Billion – and that was during a pandemic!

Much of the speculation had been ‘built in’ to the international investment markets where a drop in value prior to the election was followed by an increase that brought many markets back to the positions being held about a month earlier. More important than a short term ‘fluctuation’ is the medium to long term outlook. It is well documented that Mr Biden was against Brexit and there is a risk (no matter how big or small that might be) that a trade agreement with USA will not be frictionless, especially where agriculture is concerned. It is also apparent that the UK will need to explore how far away from the curve we are in terms of new technology (for example, 5G telephony, battery technology and new industrial processes). It is becoming clear that ‘green spending’ and the UK desire to be carbon neutral by 2050 will be an area that collaboration could exist in. The funding of their Defence Advanced Research Projects Agency (DARPA) may differ in terms of their objectives, but centralised funding may become something the UK should embrace. This brings me to my point: Government spending to recover from COVID and the need to change direction in terms of commerce and industry will be divided between COVID recovery and publicly speaking up for individuals which is potentially a more political issue – the result will be greater debt that will need to be repaid. Seldom has there been a more important time to take informed advice when investing for your personal future than now. The use of investments that traditionally reacted in predictable ways has changed. We might get a more traditional communication with the USA but if there is pressure to move away from G7 to a democratically based D10 the UK position could be stronger, for sure the influence of the UK globally will reduce unless we change. That is all very heavy stuff, but these are changing times, and Brexit is only a few weeks away – normally the deal making takes place close to the end, we will see. For advice on the here and now contact an independent financial adviser. Issued by Wealthline Limited, which is authorised and regulated by the Financial Conduct Authority. Past performance is not a reliable indicator of future results and any forecast is not a reliable indicator of future performance. The information contained in this editorial should not be construed as offering investment or tax advice.

Eamonn Dorling Dip PFS Senior Independent Financial Adviser Brooks Wealth Management

Tel: 01733 314553 | Mob: 07767 795816

Email: eamonn@brookswealth.co.uk

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