11-16-2016   News
Photo credit: The Goldwater

Shareholders saw their holdings flex this past week as a Trump victory shook up the markets. One such investor, and the richest man in Mexico, lost %9 of his wealth when the Mexican peso dropped nearly %12 to a record low after the results of the stunning election. Carlos Slim is the fifth richest man in the world and number one on the list of Mexican billionaires. While this may sound like a dramatic turn of events, this is really just another day in the life of a billionaire. Large fluctuations are not uncommon and this latest ripple caused by Trump pales in comparison to the Brexit aftermath. In reality, Carlos Slim did not lose %9 of his wealth, at least not exactly. In the weeks prior to the election, the markets rose in anticipation of a Clinton victory. Much of that %9 included gains made in recent weeks, so although Slim lost 5.1 billion dollars, a large portion of that amount was money made in the previous week when assets climbed.

While the Trump victory is a historical upset, it is not having the foundation shaking effect that the media reporting on it would like you to think. Financial assets fluctuate up and down and while losses in the worlds markets may seem huge it is important to remember part of these losses are gains from previous weeks and months. Don't let the despair being sold by big media and many of the influencers on social media twist the reality. Fluctuations in financial markets are expected no matter who is elected and it is not the end of the world. Assets will retain their value and ripples in the markets will balance themselves in time. After all, the days following Trump's election pale in comparison to the 212 billion dollars lost in the Brexit aftermath, much of which has still to be regained. The markets will settle down as they do after every big election and soon things will return to normal operations.

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01-31-2018   News 16 Comment/s

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