Donald Trump will start his second non-consecutive term as president of the US later today (20 January).
His upcoming inauguration has led to mixed reactions from across the investment world.
From a UK investor perspective, a split has occurred in reaction to Trump 2.0, according to research from JP Morgan-owned digital wealth manager Nutmeg.
The research showed that 29% believe his presidency will have a positive impact on investments, while 31% disagree.
Younger investors, however, are more optimistic (59%) about the impact of a Trump presidency on their investments.
Additionally, newer investors are more positive (43%) about the impact on their portfolio as opposed to more seasoned investors (20%).
One big aspect of Trump’s administration is what tariff policy he will implement.
In regards to tariffs, Omnis Investments senior investment strategist Patrick O’Donnell, said: “The initial emphasis is going to be on China but also on Europe.
“Recent soundbites from the administration are floating the idea of a middle ground between a broad-based tariff on everything and selective tariffs on Chinese manufactured goods.
“This is softer than what we heard on the campaign trail, but the precise details will matter for investments as we move through 2025.”
Another area that has seen a noticeable reaction to a second Trump presidency is crypto and the price of Bitcoin.
Throughout his 2024 presidential campaign, Trump made it clear he is pro-crypto. In response, the price of Bitcoin has hit new all-time highs and is currently valued at $106,325.
Hargreaves Lansdown head of money and markets, Susannah Streeter, said: “With the writing on the wall so overwhelmingly pro-crypto as Trump returns to the White House, Bitcoin has surged again in value to a fresh record high.
“Both the President and the First Lady launching meme coins just before the inauguration [is] being taken as a sign that Trump’s pledge to make the US the Bitcoin capital of the world will be honoured.”
This morning the lead crypto jumped to $108,000.
Policy is expected to be outlined to make Bitcoin a strategic US asset and build up a reserve in the cryptocurrency.
The FTSE 100 also opened the week buoyed by positive winds and renewed investor enthusiasm.
Still, Streeter added: “All eyes will be on Donald Trump’s inauguration later as the 47th President of the United States, and his comments are likely to hold sway on markets.”
Nonetheless, St James’s Place senior investment specialist Nina Stanojevic did issue a warning to investors to avoid any “immediate portfolio adjustments”.
Stanojevic said: “Despite the uncertainty surrounding the future direction of the new administration, investors should avoid making any immediate portfolio adjustments in response to this political development. Historically, markets have shown resilience across political transitions.
“Reacting to short-term political shifts introduces unnecessary risk and often undermines long-term returns. Investors should remain disciplined and avoid reactionary moves that could detract from sustained growth.”
In order to obtain these results, Nutmeg commissioned Opinium to speak to 1,000 UK investors.
Divided over Trump’s return. Yes, between deluded optimists and realists.
With acknowledgements to Sheb Wooley and the Purple People Eater:
Well I saw the thing coming out of the sky
It had bouffant hair and a baleful eye
Shivering and shaking I said Ooo-Eee
It looks like a ginger MAGA to me.