What Investors Should Learn from the Presidential Election
How markets reacted to Donald Trump’s presidential win proves that you should focus on investing for the long haul.


The bumper stickers are still on cars, and campaign signs still decorate some of our neighbors’ yards, but it’s already clear that the 2016 presidential election will be discussed and studied for years to come. No matter how you feel about Donald Trump’s win over Hillary Clinton, investors can learn a great deal from the election, especially about how the markets reacted.
Simply put, the election is a great example of how emotions control the markets in the short term.
In the final days of the campaign, you could see the markets pricing in a Clinton presidency. The markets always like certainty and, whether you agree with Clinton’s policies or not, people know who she is and how she would govern. For the last quarter of a century, Clinton has been a familiar figure, and the markets reacted accordingly. The last two days before the election we saw growth in the markets as Clinton was expected to win.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
As results came in on Election Day, you could see the markets react to the increasing possibility of a Trump presidency. After-hours trading started to drop. As it became more evident that Donald Trump was going to win, futures started taking a nose dive. When Trump was announced as the winner and he spoke, the markets started to rebound. The next day, once Wall Street had processed the results and the pundits began to dig into Trump’s actual policies and proposals, the markets garnered some momentum, finishing the day up around 250 points.
The election serves as a classic example of how emotions — euphoria, fear, greed — have the tendency to drive short-term markets. That’s when investors should be careful, as we can trip up over own biases and emotions. We should think about riding out that emotional volatility, which is increasingly hard to do in this age of social media and instant communications. With so many stories out there that can impact our investment strategies, we have to do our diligence on authors and their articles. We have to vet the information we come across and the biases it might contain.
All of us have to remember that investing is usually a long-term proposition and fundamentals will eventually take over. That’s one of the reasons having an experienced, knowledgeable adviser can help. Of course, investors need to trust the advisers they work with to build a proper allocation or offer recommendations. Just like filtering out news stories, investors need to do their research when it comes to advisers and money managers.
When looking for an adviser, investors should consider finding an adviser that can review how volatility can impact their retirement and put together a plan considering asset allocation based on their needs and their situation. The best financial plans are typically built for the long haul. Sure, there might be short-term volatility, but the shrewdest investors known to turn off the noise and keep focused on their long-term plans.
Investing can involve riding an emotional roller coaster. It comes with the territory. But a good adviser can help make sure investors are strapped in tightly with a secure seat belt and a strong harness over their shoulders. Over the long term, with the right adviser and plan in place, investors will be able to survive the ups and downs of the market and emerge stronger than when they started in the markets.
Markets will always cycle, of course, but, in the long haul, investors will typically be fine if they remain aware that fundamentals drive the market – even as we all experience emotional highs and lows with each election and news cycle.
Curt D. Knotick is a financial adviser and chief executive officer at Accurate Solutions Group, LLC, based out of Butler, Pa. He has more than 26 years’ experience in the financial industry. ).
Investment Advisory Services offered through Global Financial Private Capital, an SEC Registered Investment Adviser. ).
Kevin Derby contributed to this article. ).
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Curt D. Knotick is a financial adviser, insurance professional and managing partner at Accurate Solutions Group. He hosts the radio program "Your Retirement Blueprint" with Curt Knotick.
-
$425 Million Google Class Action Lawsuit: Do You Qualify for a Payout?
Google was found liable for violating the privacy of 98 million users in a class action lawsuit. Are you one of them?
-
Kiplinger News Quiz, September 5, 2025
Quiz 401(k)s, Google's Alphabet and tariffs on luxury goods all made Kiplinger headlines this week — but why? Test your knowledge of this week's financial news.
-
Greed, Fear and Market Volatility: A Financial Adviser's Guide to Keeping Emotions Out of Investment Decisions
Don't panic! And don't be so confident in the stock market that you overlook risk. Instead, be logical. Your retirement security could depend on it.
-
Want a Financial Adviser Who Shares Your Faith? Look for One With a CKA Designation
Financial professionals with a Certified Kingdom Advisor certification are committed to integrating biblical principles with sound financial advice.
-
10 Ways to Stay Safe From Grandparent Scams and Other Fraud, Courtesy of a Financial Planner
Scams are increasingly hard to detect, and anyone can be fooled, from older people to educated professionals. Here are 10 ways to avoid becoming a victim.
-
This Is How the Student Loan Bubble Is Primed to Pop, From a Student Funding Expert
Fueled by easy money, inflated tuition and high default rates, the student loan bubble mirrors the 2008 subprime mortgage crisis. We could be headed for a potential financial collapse. What can we do?
-
More Than Money: The Hidden Toll of Financial Abuse of Older Adults
Financial abuse from schemes involving tech support, government impostors, false sweepstakes, grandchild hoaxes and online shopping issues can cause thousands of dollars in losses.
-
I'm a Financial Planner: Here Are Three High-Impact Ways to Make a Difference With Your Dollars
The world often feels out of control, but here are three ways to use your money — through investments, charitable giving and political donations — to help create a more just and sustainable future.
-
The Unsung Hero of Aisle 5: A Tale of Forgotten Change and Compassion at the Supermarket
This supermarket manager went above and beyond to help when a child forgot her change at the checkout counter. You might be surprised at some of the complications that supermarkets face when it comes to customers' forgotten change.
-
Train, Integrate, Retain: A Strategic Playbook for Adviser Onboardings
Build a thriving practice by training new advisers with clear goals, structured processes and consistent mentorship for strong team growth.