Irish investors warned on ‘overvalued’ shares due to Trump and Brexit

Irish investors have been warned off from increasing their bets on overvalued Irish and global shares because the risks posed by President Donald Trump cutting US corporation taxes and by Brexit-driven choppy currency markets for Ireland’s economy are just too great.

Darren McKinley, a senior equity analyst at Merrion Capital, has told investors to cut their risks in Irish shares and global stockmarkets for the time being and delay buying until later this year because market expectations for the President Trump administration already reflect too much optimism “which sets the stage for disappointment ahead”.

World stockmarkets, including the Iseq index, have rallied since the surprise outcome of the US election as President Trump pledged to invest big in US infrastructure. The S&P 500, which includes many US technology firms, has risen 6% since November 8, while the Iseq has done better still, advancing by 8.5%.