Investors Reflect on 2017 Performance of USA and UK Markets

Now that we find ourselves nearly halfway through 2017, it’s a good time to reflect on the performance of a couple of the world’s leading investment markets.

Following the 2016 shock election of Donald Trump in the United States, and the UK Brexit vote to leave the European Union, some traditional and alternative investments were able to demonstrate resilience in the face of economic and political uncertainty. As much as it was a show of the market’s strength, it was also a sign of investor confidence.

With high hopes for reform to America’s economy and political institutions, investors across the globe have continued to invest in the country’s promising future. During the beginning of 2017, many stock markets reacted favorably to the election of President Trump and made record gains. In addition to this, the U.S. dollar strengthened against other major currencies, which in part inspired the Fed to raise interest rates. Each of these signals a vibrant American economy, and gives investors the confidence they need to continue investing, as well as keep global markets rising.

The UK vote to leave the European Union stunned the world and shocked the investment community. Brexit cast a shadow on Great Britain’s markets for a short period before they rallied in support of the decision. In the eyes of analysts, the GBP and domestic markets have shown incredible strength and proven that Brexit will be more of an inconvenience, than a barrier to investment. Given its position in the G7 and G20, the economic well-being of the United Kingdom is in the best interest of not only Europe, but the world as well.

Undeniably, politics has a significant impact on economic progress. When markets are interrupted by a challenge to the status quo, they have the potential to act favorably or unfavorably. In both cases, Trump’s victory in the United States and the Brexit decision in Great Britain, the U.S and UK markets proved strong enough to adapt to and implement positive change. In the last year (2016–2017), this has been a boon for the world economy, as well as investors’ investment portfolios.