This too shall pass…
It’s 10:38 p.m. on November 8th, 2016 and it appears global stock markets don’t like our pick for the 45th President of the United States of America. Last I checked, the S&P 500 futures were trading lower by about 4%.
My phone has been lighting up since about 6:00 p.m., but nobody asked about my thoughts on the election or who I voted for. I cast my ballot for the Libertarian candidate, Gary Johnson, for the record. Most of the texts were of the “should I buy?”, “sell?”, or “I feel really bad for you” variety. Anyone who got a response was likely bored to tears with my response:
“This too shall pass.”
Consider me wired for this stuff, or desensitized, or maybe a combination of the two. For our clients, we can’t allow ourselves to get too high or too low based on the sentiment of the individual moment, otherwise we’d deliver little value.
The President is a small actor on this global stage and global economy we’re all a part of. I give the American worker, the global consumer, and businesses everywhere too much credit that can’t be shared with the POTUS. Should they be revered and respected? Sure, whenever possible. Do they dictate profits? Currency movements? Interest rates? Tangentially at best.
All Presidential policies run the gauntlet in hoping to see the light of day, and by the time they do, corporations and investors everywhere will adapt and carry on.
Markets work. Even if in the short term they drive us mad. I invest because I believe in you. I believe we’re always getting better, developing new products, better services, and those who risk their capital to support that should and will be rewarded.
Trump doesn’t change that. An ugly election season doesn’t change that. We’ll approach investing the same way today as we did yesterday. We seek value, and we seek to protect capital when the trend is against us. Fear can never be allowed to define a process.
This too shall pass.
Blake Street, CFA, CFP®
Blake Street, CFA, CFP® is an Investment Advisor Representative of Warren Street Wealth Advisors, a Registered Investment Advisor. The information posted here represents his opinions and is not meant as personal or actionable advice to any individual, corporation, or other entity. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Nothing in this commentary is a solicitation to buy, or sell, any securities, or an attempt to furnish personal investment advice. We may hold securities referenced in the blog and due to the static nature of content, those securities held may change over time and trades may be contrary to outdated posts.