09 Nov How to handle post-election volatility – thoughtfully
by Brian Kazanchy, CFP, Managing Partner and Investment Committee Chair, RegentAtlantic
I want to share this morning our Investment Committee’s thoughts on the anticipated market volatility following yesterday’s US Presidential elections. The result was surprising based on the polls. President-elect Donald Trump was the unconventional candidate and it will take time to gain clarity over the policies he may implement in coordination with the rest of the government when they assume office next year. Several policies Trump has suggested, including infrastructure spending and tax cuts, may be viewed favorably by investors. Other proposals may cause investor anxiety – primarily those issues around the flow of trade. It will take time for any policy to be negotiated and made effective, as our founding fathers built a system of checks and balances that ensures that no one branch of government is autonomous.
Fear of the unknown and change are causing markets to open lower this morning. We spoke about the potential for a “surprise outcome”, defined as a Trump win or a clean sweep of all three branches by the Democrats, on last quarter’s investment webinar and the subsequent potential for short-term market volatility.
What do we do now as thoughtful investors?
• Remain calm. We are long-term investors and we need to keep that perspective. We will wait for volatility to subside and continue to evaluate which investments offer the most suitable risk/return tradeoffs for the future.
• Carefully evaluate potential opportunities. Market volatility may create buying opportunities over the next few weeks.
• Analyze and respond to any potential long-term changes in the global financial markets. The response by world leaders and central banks will be one key to understanding how this vote will impact the global economy.
Please feel free to reach out to me directly with any questions about your portfolio or financial plan. We will be holding a Post-Election Webinar on Monday evening, November 14.
Brian Kazanchy is a certified financial planner and Managing Partner and Investment Committee Chair with RegentAtlantic in Morristown. He may be reached at moc.c1603137033itnal1603137033tatne1603137033ger@y1603137033hcnaz1603137033akb1603137033 or (973) 425-8420 x235.
This is a sponsored section. The advisors have paid a fee to post their commentary here. Their sponsorship doesn’t influence any editorial decisions we make at NJMoneyHelp.com, or give them more or less exposure in our stories. Their posting does not constitute an endorsement by NJMoneyHelp.com.
Important Disclosure Information
Please remember that different types of investments involve varying degrees of risk, including the loss of money invested. Past performance may not be indicative of future results. Therefore, it should not be assumed that future performance of any specific investment or investment strategy, including the investments or investment strategies recommended or undertaken by RegentAtlantic Capital, LLC (“RegentAtlantic”) will be profitable. Please remember to contact RegentAtlantic if there are any changes in your personal or financial situation or investment objectives for the purpose of reviewing our previous recommendations and services, or if you wish to impose, add, or modify any reasonable restrictions to our investment management services. A copy of our current written disclosure statement discussing our advisory services and fees is available for your review upon request. This article is not a substitute for personalized advice from RegentAtlantic. This information is current only as of the date on which it was sent. The statements and opinions expressed are, however, subject to change without notice based on market and other conditions and may differ from opinions expressed in other businesses and activities of RegentAtlantic. Descriptions of RegentAtlantic’s process and strategies are based on general practice and we may make exceptions in specific cases.
Please remember that RegentAtlantic does not provide tax advice. Please consult with a tax advisor of your choosing prior to implementing any of the strategies discussed in this article.