What About the Post-Election Stock Market?
Well it’s over, and whether you are deliriously happy or in the depths of despair, you may be concerned about how your investments will react post-election.
As I have been saying all along, elections happen often, our president is only temporary, and your investment plan is a decades long process. The world economy is much bigger than one person, although, judging by international markets’ reaction to our election (negative), our temporary person seems pretty important to the world.
When the early results started pointing to a Trump win, US stock market futures plummeted. Happily, they have come back from the panic and are hovering around -1.23% (S&P 500) and -1.24% (Dow). Sure, no one likes a down day or market volatility, but in the grand scheme of things this isn’t too terrible.
Don’t forget, you also have bonds in your portfolio which may benefit from a “flight to safety” mentality and give you some lift. Ironically, even when things look bad for the US, the world can’t see any safer investment than US treasuries, so demand those seem to go up in times of uncertainty.
My advice remains the same: You are invested for the long term. Don’t let short-term stock market drops make you lose sight of your long term investment plan.
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