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Clinton trumps Donald in adviser polls

Clinton trumps Donald in adviser polls

Trump becoming President would cause a huge sell-off in financial markets, UK financial advisers have warned.

As Americans go to the polls today, (8 November) Colin Beveridge, chief investment officer of True Potential Investments, said: “Hillary Clinton is the candidate the market expects to win. 

"If that happens, investor thinking will begin to swing away from US politics back towards global issues. If Donald Trump emerges as the winner, we expect an initial fear-based sell off by investors.”

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He said as the US makes up more than half of global investment markets, UK investors will feel some of the inevitable volatility, whatever the outcome.

On Monday 7 November, betting site Paddy Power put the odds of a Trump victory at 4-1. 

Advisers taking part in a Twitter poll for Talking Point were adamant that Ms Clinton would be a far better economic choice of President than Mr Trump, as far as their clients' portfolios are concerned.

The poll revealed 82 per cent of advisers were confident a Clinton victory would be better for global stockmarkets.

Mr Beveridge added: “The best way for investors to insulate themselves is to make sure they are diversified globally.

"Our portfolio proposition includes a wide range of investment styles that react differently under contrasting conditions. 

"This helps mitigate portfolio volatility allowing us to focus on generating long term return. This approach transcends the need for short-term market timing.”

This comes as adviser Colin Parkin, managing director of Ample Financial Services, said he had positioned his clients' portfolios defensively against any predicted slump in the US dollar. 

He told FTAdviser: "Where clients have made significant profits on funds we have made decisions to run safe, a month is a long time in politics and we will have a good indication in the run up until to the 8th November and shortly afterwards."

Mr Parkin had made a successful call in June ahead of the UK's vote to Brexit, moving clients out of currency and property funds ahead of the sharp drop in sterling and the gating of daily dealing property funds.

At the time, he told FTAdviser: "We informed all our clients we thought the likely scenario would be ‘Leave’ and as a result, warned that property funds and currency holdings would take the hardest hit.”

He said after the warning, most clients agreed to sell out of their property funds and currency holdings, apart from a few clients whose portfolios suited long-term investments in these asset classes.