03 Nov Stocks, meet Trump and Clinton
Q. What will happen to the stock market if Clinton wins? Or if Trump wins? I’m thinking of sitting on the sidelines till things settle down.
— Waiting patiently
A. Again, our dear readers want to see our crystal ball.
But we don’t have one.
The simple truth is nobody knows what will happen when the election is over, said Victor Cannillo, founder of Baron Financial Group.
“No matter which candidate is elected president, historically, stocks will continue to rise and fall as they always have,” Cannillo said. “This election will most likely be no different.”
Right now, Cannillo said, you might be hearing a lot of market commentary that starts with “If Trump Wins” or “If Clinton Wins.”
These commentators can help investors be swayed to believe that because a certain president is elected, we should be making changes to our investment strategies and portfolios, Cannillo said.
So to the question: “Should the election affect your investment strategy?”
He said the most important thing to remember is that you need to keep emotions out of investment decisions.
“Keep in mind that we are not electing a king, but rather someone who will be in office at most eight years, with a Congress and Senate that will account for checks and balances,” Cannillo said. “There might be some short-term volatility, but always remember that you are investing for the long-term, not just for the four to eight years of a presidential term.”
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This post was first published in November 2016.NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.