Dive Brief:
- CNBC reports on the falling stock market news of Donald Trump's election, as futures dropped more than 900 points during last night's preliminary returns.
- Uncertainty about Trump's plans for international trade and domestic regulation have foreign markets like Mexico in flux while traders suggest that a better picture will emerge in the coming days.
- Colleges and universities, which have already seen dramatic lows in returns on endowment investments, may see increased losses in the months leading up to Trump's inauguration.
Dive Insight:
Given Trump's plans for domestic business and his track record of spectacular achievements and failures in industry, college investment portfolios may see dramatic highs and lows in the years to come, which does not bode well for increasing discussion on student affordability and access. Endowment spending and investment income have already been targeted as an area of interest for Trump, and could become an even larger point of discussion if changes are made to federal student loan programs — even if some fund managers decided to stick out the election outcome without major changes.
Colleges will have to examine portfolios carefully and consider putting on hold real estate or innovation investing for the short term until the new president, and markets, show how the money will follow the new leader of the free world.