The Trump Effect

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Donald Trump’s presidential win came as a surprise to the world, and with just weeks until he takes office Canadians are asking themselves what will this mean for the folks up north.

Effect on Big Banks
After Trump’s win Goldman Sachs’ stock shot up by 30 per cent. Although just a brief reminder Sachs was one of the key players in the 2008 U.S. housing market meltdown that dragged the world economy into the dark ages. To make matters slightly more interesting Sachs’ COO Gary Cohn will become the director of the White House National Economic Council. These factors are significant to Canada’s housing market as the purchasing power of the U.S. dollar affects us in innumerable ways. If the American dollar continues to strengthen, we could see an increase in buyers north of the boarder.

Effect on Local Currency
Since the election the U.S. dollar has hit an 11-month peak. This jump may be attributed to the possibility of a free handed spending spree by the president-elect. On the contrary, the Peso has taken a tremendous beating since Trump’s win. The Canadian dollar was also left trembling as it waits to see if Trump’s position on free trade holds. If so, the Loonie may decrease even more against the U.S. dollar. 

Canada Becoming More Attractive
One possibility in the wake of Trump’s win is that an increase in demand could arise from those who decide to move/flee and head up north. Any further increases in demand will drive property prices even higher.
Effects of Trump’s win are yet to be realized as the dust is still settling after the presidential election. In a statement from Canadian Real Estate Association, Gregory Klump admitted, "Nobody knows what it means for the Canadian economy writ large, let alone housing markets across the country." Therefore at the moment the repercussion are impossible to determine.



Taken from an article on Huffington Post by Atrina Kouroshnia
http://www.huffingtonpost.ca/atrina-kouroshnia/donald-trump-real-estate_b_13945110.html



                                                                                                                         

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