I’m sure like me, many of you are groggy this morning from staying up until almost 3:00 AM to see how the Presidential election was going to end. It was a long night.
What didn’t take long is the opinion pieces coming out this morning from all the Hillary supporters in the financial commentary world telling us that we are headed for an economic crisis/market crash/world war 3 – insert your favorite doom and gloom headline here.
Call it sour grapes or just the realization that the American public is obviously pissed off and tired of business as usual. Perhaps the big money backers of the Clinton’s, and their cronies, are an endangered species. The market is down and they are using it as vindication that the country – and the world – needs Hillary.
Not so fast. Remember what happened after the Brexit vote. The market sold off and then recovered. Why? Those that were in favor of staying in The E.U. used the market selloff as a sign of the Armageddon that was to come if the U.K was no longer in the E.U. The reality was that the market had run up in the days prior to the vote because the polls had the vote going overwhelmingly to those that wanted to stay. Sound familiar?
In the last few days prior to the election all the polls foretold a Clinton victory and the market reacted. Last night, as reality set in, those that had placed their bets now had to lick their wounds.[UPDATE: Morning meeting prevented me from posting this as quick as I would have liked. At noon the market is actually up!]
What is the appropriate action to take with your portfolio? C’mon, you know the answer to that. NOTHING! As the families we work with understand, investing is for the long term and part of your overall financial plan. We DO NOT react to short-term news and events.
After every election, we see the same thing. The losers telling all those that voted for the winner that they made a tragic mistake that will lead to the end of the world as we know it.
The world may be turned upside-down but it isn’t ending. We will endure and prosper. Change is good. Like it or not maybe this is exactly what we need.