It's not all bad news that Republican Donald Trump has been elected the 45th president of the US, according to Dr Shumi Akhtar, a senior finance lecturer at the University of Sydney Business School.
A rational response to Trump's win, rather than an emotional one, is needed according to Dr Akhtar, given there's no concrete evidence his presidency would sink the economy.
"They should just let information sink in and see how it pans out. You have to give a chance to him,” she told SBS.
MORE ABOUT THE 2016 US ELECTION
'I love this country': Trump gives victory speech, will be next US president
Take the example of Brexit earlier in 2016, it was a classic case of overreaction, she said.
“Everyone thought there'd be a collapse so there was an unnecessary reaction to the market."
And, just a few days after the US election, the US and European markets have already recovered, and Australia started Friday trading in the green.
US stock futures took a nose dive as Trump pulled forward in the vote count on Election Day. At one point, traders forecast Dow Jones to lose 4 per cent, the Mexican peso hit a record low, Sydney sunk by 3.4 per cent, Singapore 1.7 per cent and Seoul took a 3.2 per cent hit. And then they rebounded.
"After all the negativity that's been said, there's been no evidence [to suggest an economic collapse]".
Trump stock market. Source: AAP
'The economy doesn't operate on rumours'
No one predicted what would happen if Trump won, meaning not enough thought has been put into how his presidency could play out, said Dr Akhtar.
"It was more that it was a joke. Now that he won, everyone goes, 'well we said all these bad negative things so maybe it will come back to bite us'.
"But you see a whole economy doesn't work that way, it doesn't operate based on rumours."
Instead, she said, it operates on sensible and meaningful policies.
"These policies are going to be made in the best interest of the US and also in the best interest of the other nations as well, after all it is a globalised nation."
READ THIS STORY
'We're all Americans,' Obama tells Trump protesters
Trump's views on tax
Trump: "We'll hire workers and we'll open factories and we'll get rid of these horrible regulations that make it impossible to do business in this country.
"This will also include massive tax reform to lift the crushing burdens on American workers and businesses."
- Speech on trade in June.
Trump proposed cut downs on corporate tax, which Dr Akhtar said would stimulate US businesses and international businesses, especially those owned by his allies.
"One of the good things about Trump is that he did propose that he wants to cut down on tax, which is heaven for businesses within the US and for the companies that are US-owned. But it's also good for international businesses as well."
She also believes that he would likely re-haul the entire system to ensure fairness – the reduced tax rate would affect both the big and the small corporations.
"He'll likely fix the whole system so the big fish don't get away with paying less tax [while the smaller companies are compelled to pay more]," she said.
Trade
Trump: "I am going to renegotiate NAFTA [North American Free Trade Agreement]. And if I can't make a great deal - then we're going to terminate NAFTA and we're going to create new deals. We're going to have trade, but we're going - we're going to terminate it."
- Speech on trade in June.
Trump has made it clear he does not support free trade agreements, which are designed to reduce trade and investment barriers.
"But the thing is, if it's going to be abolished, it will happen to every country," Dr Akhtar said.
"If it happens for every country then we are no worse off or better off."
There could be some non-country-specific amendments, she said, but added people were otherwise jumping to the conclusion that America's free trade agreements would be abolished completely.
"Australia happens to be an ally, one of the major allies in Asia South Pacific region to the US.
"There's no reason to believe that suddenly he's going to cut off all the ties and therefore we will be living in poor health in terms of our trade and our businesses with the US."
Australian economist Tim Harcourt from UNSW Business School told SBS that while there might initially be US "sabre rattling", it would settle down.
"There'll be threats to impose 35 per cent tariffs or 45 per cent on all ordered goods, which they say will target Mexico and China but in reality they're on goods, they're not on countries."
Traders Gregory Rowe, left, and Robert Finnerty work in their booth on the floor of the New York Stock Exchange, Wednesday, Nov. 9, 2016. Source: AP
While Trump tends to be a little bit more protectionist - America first - "he'll probably set up Australia as quite a strong, friendly trading partner to China, Japan, and Korea and Southeast Asia".
It's also important to note that trade negotiations are actually conducted by the Congress, Mr Harcourt added.
"If [Trump] wants to reform that or rip it up - the TPP - that's really a decision for Congress, not for Trump,” he said.
In addition, Mr Harcourt said: "The Democrat side is more protectionist now as well as the Republicans side, so I think … Bernie Sanders killed off the TPP, I don't think Trump did."
RECOMMENDED STORY
Clinton, Trump clash over economy
'US-China will balance each other'
Trump: "We have to make it absolutely clear that we're willing to trade with China, but not to trade away our principles, and that under no circumstances will we keep our markets open to countries that steal from us."
- 'The America We Deserve' by Donald Trump
While there could be some negative repercussions with China, the US would be unwise to cause too much friction, Dr Akhtar said.
"If the US retaliates on China, China is a powerhouse too, they can retaliate back and no one would be better off.
"Big countries like that in the world would like to do something in a sensible way more so than the opposite."
UNSW'S Tim Harcourt agreed, saying that the relationship might be more positive than people have anticipated.
"He's probably going to be much respected in China in some ways.
"When you're actually in office, the incumbency gives you a new reality.
"I think Trump will talk big on China, but I suspect that he and the Chinese leadership are pretty pragmatic."
A chance for US to lessen its debt?
Trump: "I want to help all of our allies, but we are losing billions and billions of dollars. We cannot be the policemen of the world. We cannot protect countries all over the world."
- First presidential debate in September.
Dr Akhtar said she believed Trump would take sensible action to alleviate US' mass debt.
"America is going backward, there's no doubt. I mean they've got trillions of dollars of debt and it's time someone takes a new direction, a new path."
She lauded his foreign policy regarding Iraq and Syria.
"He will not basically play a foolish game again just to show their power - go and spend unnecessarily on another economy - only to have a really bad, big debt in their balance sheet. That's where he's going to cut down," she said.
"He never lied [about the] US sending so much troops, sending so much money, basically sticking their nose in someone else's business, especially in the Iran-Iraq war, in Syria."
While a catastrophe is occurring in the civil war between the government and rebels in Syria, the US has never had a strong hand to play there.
Dr Rodger Shanahan, a Middle East expert at the Lowy Institute think tank, told SBS in October that "Russia has always had influence in Syria, whereas US has never really had that.
"They [the US] thought they might have been able to wrest Syria away, but now that hope has evaporated," he said.
Russia has long been known as an ally of Syria. It gives Russia access to the world and offers a market for selling arms.
Dr Akhtar said: "The geographical region is much close to Russia than to the US … Russia has already spent so much money and already has got vested interest, so there's nothing for US to gain.
"When you already know there's nothing to gain, why would you bother."
A volunteer fighter with the Syrian Government forces sits atop a tank in the province of Raqqa, Syria, Feb. 17, 2016, Source: AAP
Immigration
Trump: "The time has come for a new immigration commission to develop a new set of reforms to our legal immigration system in order to achieve the following goals. To keep immigration levels measured by population share within historical norms. To select immigrants based on their likelihood of success in US society and their ability to be financially self-sufficient."
-Trump's speech on immigration in August.
America has been quite generous with their immigration policies, said Dr Akhtar.
"They're letting a lot of people in who are not really contributing to the economy, and it is becoming a burden to the economy, so [Trump's] going to take a proactive action on that."
She said that while it's important that each country took in its fair share of refugees, there should be a system to ensure that the country would not be overwhelmingly negatively impacted.
Central American mothers and their children take a place on the floor of a portable tent at the Humanitarian Respite Center in Texas. Source: The Monitor
According to 2015 UNHCR data, the US has the highest intake of refugees (66,500), followed by Canada (20,000) and Australia (9,400).
"You’d like to help someone, but if that's only to bring the whole country down no one would sensibly do that."
READ THIS STORY TOO
Trump endorsed by US immigration officers
Health
Trump: "With Obamacare, premiums are surging, companies are leaving, insurers are fleeing, doctors are quitting and deductibles are going right through the roof."
- Speech on healthcare on eve of election day in November.
Trump's position on healthcare could also stimulate the US economy, Dr Akhtar said.
"Obama's health care system I think is quite clear it hasn't been working so well, and many people in the US are quite upset about that.
"Helping that also makes the nation quite healthy … which is also going to have an impact on the employment too.
"If health-wise you are all good, then you might be more active at work."
