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.