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.
Sign up for Kiplinger’s Free E-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.
-
The Trump GOP Tax Bill Could Worsen California Cost of LivingState Tax Energy bills in the Golden State may shock you if Republican lawmakers in Congress remove certain energy tax credits through Trump's 'big, beautiful bill.'
-
The Best Covered-Call ETFs to BuyCovered-call ETFs can provide consistent, above-average income generation, but they can also cap potential upside. Here's what to look for.
-
Wealth Advisers: In Estate Planning, the End Is Just the BeginningWe need to keep the lines of communication with our clients open so that we can anticipate and help them navigate issues that arise over time.
-
Stood Up by a Radio Show: But Was It a Breach of Contract?A conscientious financial planner reschedules his clients after being invited onto a talk show and ends up losing one of them at a cost of $5,000. What does the radio show owe him, if anything?
-
Eight Estate Planning Steps to Protect Your Loved Ones (and Your Legacy)Two-thirds of Americans don't have an estate plan. If you're one of them, these are the essential steps to take now to prevent problems for your family later.
-
The Six Pros This Adviser Says You Need to Sell Your BusinessSelling your business isn't as simple as getting the best price and walking away. These are the six professionals you'll need to get a deal across the finish line.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build WealthConsistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key PiecesIf retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or RelocateHomeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
