Election Results Impact On Investment Portfolios

Nov 9, 2016 | Investment Updates

The White House in Washington DC the evening of the election results

Regardless of your political thinking, if you own investments, you likely find yourself now pondering the potential impacts of last night’s Presidential election results upon your holdings.

Up until last night, the polls and the markets had largely anticipated a Hillary Clinton win. Donald Trump’s victory has introduced an element of uncertainty, something that the markets typically don’t favor.

 

Our US futures and the Tokyo stock exchange experienced significant pressure during the evening of the election, as results suggested a Trump win. As of early trading post-election, losses have pared back to the point where the markets have moved in and out of positive territory. While SageVest Wealth Management can’t prognosticate the future direction of the markets, we do recognize that an aura of uncertainty could sustain. We also recognize that market reactions to elections are typically short-lived, and we hope that history will hold true in that regard.

Today’s market volatility indicates the need for investors to structure well-balanced, diversified portfolios positioned to participate on the upside and that can withstand market downturns, while allowing you to take advantage of buying opportunities.  As always, investors should avoid emotionally charged financial decisions.

A full sweep Republican-win from the White House, to the Senate, to the House of Representatives likely does translate into future changes, including shifts in government spending, taxes, policies and more.  While there was a lot of rhetoric on the campaign trail (which there always is), we anticipate the future outcomes will be heavily debated, far more muted, and staged over a period of years.  This is particularly likely given the fractures and differences that exist within the Republican party.  With this, we think that the markets will calm over time, even if volatility spikes in the short-term.

As part of our responsibilities to our clients and their portfolios, SageVest Wealth Management holds a mix of investments designed to perform differently in various market and economic environments. We’re also at-the-ready to evaluate and act on buying opportunities, should they present. We’re watching areas that experience any short-term pressure and we’re thinking about the future. We remain focused on the long-term, and suggest that you do as well, remembering that periods of stock volatility can lead to long-term gains.

We’re happy to discuss your investments and appropriate positioning with you. Please contact us if you would like to discuss your more immediate and longer-term goals as they relate to your investments and the markets.

Prepared by SageVest Wealth Management. Copyright .
Standard Disclosure

The information contained herein is obtained from sources believed to be reliable, but its accuracy or completeness is not guaranteed. This article is for informational purposes only. The views expressed are those of SageVest Wealth Management and should not be construed as investment advice. All expressions of opinions are subject to change and past performance is no guarantee of future results. SageVest Wealth Management does not render legal, tax, or accounting services. Accordingly, you, your attorneys and your accountants are ultimately responsible for determining the legal, tax and accounting consequences of any suggestions offered herein.

In accordance with IRS CIRCULAR 230, we inform you that any U.S. Federal tax advice contained in this communication (including attachments) is not intended or written to be used, and cannot be used by a taxpayer, for the purpose of (a) avoiding penalties under the Internal Revenue Code or that may otherwise be imposed on the taxpayer by any government taxing authority or agency, or (b) promoting, marketing or recommending to another party any transaction or matter addressed herein.

The provision of a link to any third party website does not mean that SageVest endorses that website. If you visit any website via a link provided here, you do so at your own risk and indemnify SageVest from any loss or damage incurred.

SAGEVEST WEALTH MANAGEMENT

Focus on your family’s financial best interests with customized wealth strategies

Get financial advice delivered to your inbox.

Make a wise investment in your future today.