So the election is over, with President-elect Donald Trump the victor and both houses of Congress controlled by the Republican party. While stock futures were rocked overnight, the broad American indices closed in positive territory the next day.
First, stay calm. Whatever your politics, it's important to recognize that half of American voters are elated right now, and the other half are anxious. Fear has driven a lot of the news in this election cycle, and until there's more policy certainty and a degree of predictability, we'll likely see a continuation of volatility going forward.
That being said, generally speaking, it's better not to make too much out of post-election day jitters. Market moves after a national election aren't predictive of the state of the market going forward—in fact, they're no better than a coin toss.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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.
But volatility also drives opportunity. I think we'll see some strength coming back into the markets and, in my prediction, we'll even go to new highs.
What can you do now?
The appropriate course of action for you depends on your personal financial situation, your risk profile and your time horizon. You might be better-served by staying the course in a diversified strategy or by strategically deploying cash.
Just keep in mind that no matter who you voted for, the American economy is resilient, diversified and strong. That makes for good long-term prospects, in my view. I always urge my clients not to ride the highs too high or the lows too low. Instead, it's important to step back from your emotions and have a plan.
I don't have a crystal ball, but in my 24 years as a wealth adviser, I've seen plenty of uncertainty and volatility before, and we'll see it again. The market climbs a wall of worry, which makes prudent planning all the more important.
Bradford Pine is a wealth adviser and president of the Garden City, NY-based Bradford Pine Wealth Group. He assists individuals to create wealth, simplify their lives and plan for retirement.
-
Waiting to Retire to Give to Charity? 3 Reasons to Do It NowYou could wait until retirement, but making charitable giving part of your financial plan now could be far more beneficial for you and the causes you support.
-
Are You Ghosting Your Finances? What to Do About Money StressAvoidance can make things worse. You can change your habits by starting small, talking with a family member or friend and being consistent and persistent.
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market TodayA stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Waiting for Retirement to Give to Charity? Here Are 3 Reasons to Do It Now, From a Financial Planner
You could wait until retirement, but making charitable giving part of your financial plan now could be far more beneficial for you and the causes you support.
-
Are You Ghosting Your Finances? What to Do About Your Money Stress
Avoidance can make things worse. You can change your habits by starting small, talking with a family member or friend and being consistent and persistent.
-
Time Is Running Out to Make the Best Moves to Save on Your 2025 TaxesDon't wait until January — investors, including those with a high net worth, can snag big tax savings for 2025 (and 2026) with these strategies.
-
I'm an Insurance Pro: If You Do One Boring Task Before the End of the Year, Make It This One (It Could Save You Thousands)Who wants to check insurance policies when there's fun to be had? Still, making sure everything is up to date (coverage and deductibles) can save you a ton.
-
4 Smart Ways Retirees Can Give More to Charity, From a Financial AdviserFor retirees, tax efficiency and charitable giving should go hand in hand. After all, why not maximize your gifts and minimize the amount that goes to the IRS?
-
3 Year-End Tax Strategies for Retirees With $2 Million to $10 MillionTo avoid the OBBB messing up your whole tax strategy, get your Roth conversions and charitable bunching done by year's end.
-
'Politics' Is a Dirty Word for Some Financial Advisers: 3 Reasons This Financial Planner Vehemently DisagreesYour financial plan should be aligned with your values and your politics. If your adviser refuses to talk about them, it's time to go elsewhere.
-
For a Move Abroad, Choosing a Fiduciary Financial Planner Who Sees Both Sides of the Border Is CriticalWorking with a cross-border financial planner is essential to integrate tax, estate and visa considerations and avoid costly, unexpected liabilities.
