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
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.
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.
-
Taylor Swift Can Shake Off Wedding Costs — But Most Couples Can't: The Price of Getting Married in 2025From engagement rings to bachelor parties, here's what it really costs to get married in 2025.
-
S&P 500 Tops 6,500 Even as Nvidia Slips: Stock Market TodayThe world's most valuable company closed lower after earnings, but the S&P 500 managed to notch a new record high.
-
Here's Why Munis Aren't Just for Wealthy Investors NowBuyers of all levels should be intrigued by municipal bonds' steep yield curve, strong credit fundamentals and yield levels offering an income buffer.
-
I'm a Financial Planning Pro: Do Your Family a Final Favor and Write Them a Love LetterSpecify your preferences in this personal document that shares your wishes on how you want to be remembered and celebrated. Your family will thank you for easing an emotional time.
-
The Future of Financial Advice Is Human: Gen Z Trusts Advisers, But AI Skills MatterGraduates entering the workforce trust human advisers more than AI tools with their financial planning. But AI can still enhance the client/adviser relationship.
-
I'm a Wealth Adviser: If You're a DIY Investor, Don't Make These Five MistakesEven though you may feel confident because of easy access to investing information, you may be making mistakes that could compromise your long-term performance. Here's what you should know.
-
Building a Business That Lasts: The Critical Steps to Avoid Blunders'Another Way' author David Whorton offers advice on how to build an 'evergreen' business that endures by avoiding common pitfalls that can lead to failure.
-
I'm a Financial Pro: Why You Shouldn't Put All Your Eggs in the Company Stock BasketLimit exposure to your employer's stock, sell it periodically and maintain portfolio diversification to protect your wealth from unexpected events.
-
How Will the One Big Beautiful Bill Shape Your Legacy?The One Big Beautiful Bill Act removes uncertainty over tax brackets and estate tax. Families should take time to review estate plans to take full advantage.
-
Should You Claim Social Security Early or Late? A Financial Adviser Weighs InThere isn't a wrong age to start claiming Social Security, but there are factors that everyone should consider to avoid leaving money on the table.
