President Trump has won reelection; what does that mean for investors?
Let's discuss.
As of this writing, Republicans have won the White House and a Senate majority, and may win a House majority. (1)
Markets reacted to the news by rallying to new record highs. (2) Does that indicate they see president-elect Trump's promises as favorable for stocks? Or is it simply a reaction to an end to election-related uncertainty? History can offer us some clues.
What do presidential elections mean for your portfolio? Should you change your investing strategy based on who wins? Elections bring a lot of noise, and I wanted to dispel some market myths around this election.
Myth #1: Elections usually bring big market swings.
You would think elections cause major market shifts (given all the politicking and intense emotions). However, history shows that elections historically don't influence market performance as much as the economy does.
Is a zombie recession coming? By that, I mean that renewed fears of a "hard landing" recession have emerged from the grave and are walking among us. Many analysts were convinced that the U.S. economy could achieve a coveted “soft landing,” but they might be overly optimistic.
What makes some economists worry about a recession?
What’s your biggest worry about the next presidential election? How do you think it’ll play out in your financial life?
Believe it or not, there’s a roughly 50-50 chance you’re worried about the next election tanking your portfolio. (1) You may also be concerned about a recession, rising interest rates, or taxes going up. (2)
No matter what has you feeling unsettled, it can all boil down to one question: Should we make money moves now, based on our election anxiety?
