What Now?

scream

 

Donald Trump will be the next president of the United States. Needless to say, that took a lot of people by surprise.

As I’m writing this Tuesday night, Dow futures are down 800, and the dollar is tanking. People are panicking. It’s the end of America… the end of democracy itself!

My advice? Wait a couple days for the dust to settle, and then buy the dips.

Seriously. We’ve had terrible presidents in the past. Lyndon Baines Johnson, Richard Nixon, George W. Bush… we’ve had plenty of terrible presidents, and yet the country finds a way to march on. The world doesn’t end.

You have to remember that the American president is one of the weakest executives in the world. In their respective countries, the British prime minister and French president are vastly more powerful than the American president. None of the more questionable aspects of Trump’s platform can happen without the consent of Congress, the Supreme Court and a good chunk of the states.

Still, the market hates uncertainty. So this is how I see this playing out. Stocks will fall like a rock on Wednesday and will probably drift lower for a couple days. But then, investors will figure out tha not much has actually changed. Just as with the Brexit, the market will shrug this off, and life will get back to normal.

Take a deep breath. It will be fine.

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.