What the markets thinks of Donald Trump 50 days on

Again, given Donald Trump has taken up so much space in the media since his election last year, its interesting to step back and look his first 50 or so days in Government and how it has impacted on the world share markets.

To date, it seems the world has had to suffer a whole lot of hot air and not much in substance since Trump was elected and this has given rise to the new acronym ‘TACO’ Trump Always Chickens Out.

That’s not to say the world and world economy has suddenly become less uncertain than it was a month ago or even three months ago. It’s just everyone is now coming to terms with this very unpredictable US President.

And of course, the problem with saying that, is that I suspect but who knows, I suspect Donald Trump would claim that to be a positive, that his adversaries can and will never know what he will do next.

Nor will America’s friends and trading partners, which is the problem.

Since gaining office Trump has upset long established trade flows and cost a lot of people a lot of money, without any apparent benefit to the people of America in the form of more jobs and lower prices.

Now in writing this, the US Federal Trade Court ruled President Trump didn’t have the authority to impose sweeping tariffs on virtually every nation it trades with, which in turn has sparked a global trade war and threatened to up-end the world economy.

No doubt the administration will appeal this judgement but the whole situation about US tariffs will most likely just get caught up in legal red tape and simply create more headaches for exporters around the world.

Even his best buddy Elon Musk seems to have a different take on the President these days and while his time as an administration assistant was due to end about now, it is clear that he is very unhappy with recent events.

Looking back so far, Trump very sadly has failed to improve the lives of Palestinians trapped in Gaza, failed to stop the war in Ukraine or even broker a cease fire and has severely upset the lives of many Americans, who have been forcibly deported from the country.

So what lessons can we take from this massive upheaval from a central player on the world stage?

Firstly, that as Australians, we are a long way away from these events and that once again, it pays to invest within Australia, in substantial Australian companies that have a proven track record of profitability and stable management.

Secondly always invest and plan for the long term. Be aware of what is going on in the here and now and how it might impact on Australia but try to maintain some perspective on just what sort of impact these events might have.

Finally, never be panicked into making knee  jerk decisions. It has always been an uncertain world and always will be, but the challenge is to decide on a strategy and focus on staying true to it over the long term.