A wild session yesterday on the Australian sharemarket finished with heavy early losses halved, as global investors slowly came to terms with Donald Trump as the next US President. 

The S&P/ASX 200 index climbed one per cent in early trade as early surveys pointed to a good start for Hillary Clinton. But selling accelerated and the index plunged to a 3.9 per cent loss before bargain hunters stepped in, lifting the index to a 1.5 per cent loss and sliding to close down 101.2 points, or 1.92 per cent, at 5156.6. At the time of writing today, the ASX is now up 2.7% from yesterday's close.



What this means for you:
The movements in global share markets yesterday and today are a great example of the folly in trying to predict market movements with any certainty. The experts were wrong in predicting a Clinton victory, and they may also be wrong in their previous assessments of Donald Trump. Time will tell what the future holds, but always remember that your goals won't change simply because of a change in political leaders. Most people still want to retire comfortably and raise their kids as well as they can.
If you're wondering why the Australian market has rebounded so strongly today after yesterday's decline, the reason is due to our strong leaning towards commodities. Trump has promised that he'll spend up big on infrastructure, which requires inputs of raw materials – something that Australia has in abundance. As we have said, only time will reveal what happens next. As always, seek professional guidance before "reacting" to events such as elections!
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