So often, we find the least expected outcome in life is the thing that actually happens. I notice it in the stock market, for instance. Many times the market moves to confound the majority. If most investors expect the market to rise, it falls; if investors expect falls, it rises, and so on. 

Just like Brexit?

Look no further than the FTSE 100 after the Brexit referendum for evidence. Many feared financial Armageddon, as the London markets would surely collapse. In the event, many shares in the Footsie have done well this year, confounding the worriers.

What will happen in the markets now, though? I hope there’s a big sell-off, which will give long-term investors an opportunity to buy more shares in good-quality companies that have  decent prospects for the years ahead.

The US under Trump will likely not be as bad as the world seems to fear, an outcome that could end up being another example of how events can confound the majority.  He may even make a decent job of the role. His speeches are already beginning to sound more presidential and less hillbilly. I found his victory speech to be conciliatory and uplifting, and he delivered it in calm, even, matter-of-fact tones. To me, he had the air of a man who is intimately familiar with what it takes to get things done in the real world , and he probably has a deep knowledge of how his own abilities and weaknesses measure up to the task ahead.

Upside potential?

In investing parlance, I reckon Donald Trump is poised to surprise on the upside. He is an experienced businessman and will probably run a tight ship. Arguably, the world needs a move away from career politicians towards leadership from people with real-world experience. 

I had been worried for some time that politicians in the UK increasingly seemed to have no experience of working life other than being politicians. We could say that career politicians are “institutionalised”, moving from school to university, then from university to the houses of parliament.

We could also argue that the state-funded salaries MP’s receive are unrealistic when compared to the wages that many employees and small business owners get in the private sector. MP’s salaries are also protected from economic pressures, lending a level of financial security to the role of a career politician that could end up distorting their view of events in the country, its economy and the wider world.

Such factors are among the drivers of the historic Brexit and Trump movements, I reckon. However, ten years from now I bet it will be difficult to detect the effect of either event on the stock market charts. Business will carry on and there’s a good chance that many things will be better than they were before, especially if we get better politicians from now on. I expect markets to normalise over time and any weakness now is a buying opportunity for investors like me who focus on owning shares in firms with great businesses for the long term.

The post What Donald Trump’s victory means for investing appeared first on The Twelfth Magpie.

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Kevin Godbold has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Millennials today have one advantage that can’t be replicated by even the smartest hedge fund manager or algorithmic trading model: the power of time and compounding interest. Albert Einstein rightly described compounding interest as “the eighth wonder of the world”. Buying shares now and giving them 40 years to grow in value is the surest way to ensure a healthy nest egg when the time comes to retire.

Start now

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But how to begin? The FTSE 100 is down 15% over the past year, unfairly dragging down with it shares of otherwise great companies. All investors, but particularly those of us with years ahead of us before retirement, would be well served by beginning to sift through the wreckage for bargain purchases. However, if you’re just starting out and don’t want to dive right in to buying individual shares there’s an excellent alternative. Buying a low-cost FTSE tracking index fund allows you to own the entire the market while you learn more about shares and investing.

If you’re ready to look for bargains, great blue chips such as Royal Dutch Shell, GlaxoSmithKline, and HSBC can be bought at valuations cheaper than the FTSE 100 at large. With diversified revenue streams, global reach and 5%-plus yields, these could form the backbone of a great portfolio to hold for decades. Although they’re not the most exotic of shares, reliability and simple business plans are exactly what legendary investors such as Warren Buffett and Peter Lynch look for in their investments.

Golden opportunity

The benefit of not needing to draw on our investments for several decades means that not only do our portfolios have time to recover from dramatic drawdowns, but that we should view times like these as a great opportunity to buy more shares at low prices. Whether it’s individual shares or index funds, the most important action to take now is to start saving whatever you can and letting your money work for you, rather than the other way round.

The post Why This Bear Market Is An Amazing Opportunity For Millennial Investors appeared first on The Twelfth Magpie.

More reading

• The CMC Markets share price is smashing the FTSE 100 in 2026. Is there an opportunity here?
• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?

Ian Pierce has no position in any shares mentioned. The Motley Fool UK has recommended GlaxoSmithKline and HSBC Holdings. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.