How should we react to the election of President Trump?

Donald Trump, newly elected President of the USA

It’s a ‘Here we go again’ sort of day today as we all assimilate the news that Donald Trump is now president of the United States.

Just like with Brexit, our message to all our clients is not to panic. Stop watching the news, don’t read the headlines and ignore the noise. This is not a time for fear and knee-jerk reactions.

It is expected that the markets will fluctuate but that is how the markets work. Be reminded that we have seen this before and like every storm, it will pass.

What should you do with your portfolio under the new President?

If you have any understanding of history and markets you will realise that we have absolutely no idea over the coming days as to how the markets will perform/react/move to this news.

The markets may go up, may go down, may stay the same. The absolute truth is that no one really knows – and someone who claims they did after the event is an example of hindsight bias.

A well-crafted globally diversified lifetime investment portfolio (which is the way we invest your money here at Serenity) is built with foresight in mind – in that it is well spread geographically and also contains thousands of individual securities (stocks, bonds) to weather all market storms and absorb the latest panics and crisis which will be thrown at it.

If anyone tries to persuade you to make rash decisions with your investments remember they’ve probably never sat in a room with a family, looked into the whites of their eyes and asked them about their hopes, dreams and fears for the future. They’ve never guided a family with care and consideration and told them how to invest their family’s life savings. That’s why we, your lifetime financial planners are the only ones truly qualified to advise and guide you. One of the things you pay us for is to be rational during times of irrationality. And thereby keep you rational too.

When we carefully craft your financial plan we fully expect large market fluctuations and these have been taken into account. 

Our data does not suggest a pattern of long term stock market performance based upon which party holds the the Oval Office. The key takeaway here is that over the long run the market has provided substantial returns regardless of who controlled the executive branch.

We are here to guide you and ensure that you and your family stay on track.