The US electorate have spoken and the world is a more volatile place this morning. Is it the dawn of Mad Max.....or simply the dawn of a new era in politics? For the second time in 2016, and after the shock of the Brexit vote, an electorate has overturned the establishment and made it clear (well by a simple majority) that the road ahead needs to be considered differently. It lay ultimately with the state of Florida to give the Free World its new leader – who would have thought that?
What does that mean for TAM investors? Is it time to panic sell – are we set to lose significant value in portfolios and has the global economy found a new sinkhole in which to plunge? Do we fear the next 12-24 months? The answer is NO – so what do we see?
In conclusion, after Brexit, nothing surprises us. This is of course a more global event that will rattle on until balance between “risk on” investors is matched by the “risk off” who see opportunity appear. As weakness unfolds we will look to commit cash presently on the sidelines at propitious levels and if gold surges, look to sell that position. The long term is a series of short terms and volatility is often the key to buying assets at good levels. We are confident the medium term is far from bleak and that the shock presently reverberating around the world will be temporary.