Whether you’re feeling elated, deflated or mostly just jaded about what just happened in the U.S. elections, we wanted to share a few thoughts related to the “What’s next?” that may be on your mind.
First, a word: There are more than enough political analyses available from even a single Google search, so we won’t enter into that fray ourselves.
With respect to our clients’ investments, here’s a quick reminder of how we feel about that: Ample evidence informs us that it is unwise to alter your well-thought-out, long-term investment strategy in reaction to breaking news, no matter how exciting or grim that news may seem, or how the markets are immediately responding.
As we saw with the unexpected outcome of this summer’s Brexit referendum, the biggest surprise may be how resilient markets tend to be, as long as you give them your time and your patience. In fact, early results indicate that the markets may already have priced in the possibility of the relatively long-shot outcome that occurred.
That said, if any of our clients want to make changes to their investment portfolio in the aftermath of Tuesday’s election, we urge them to be in touch with us first, so we can do the job they hired us to do. Specifically, they can count on us to advise and assist them based on our professional insights, their personal goals and – above all – their highest financial interests.
In the meantime, consider these words by billionaire businessman and “stay put” investor Warren Buffett, from his 2012 letter to Berkshire Hathaway shareholders:
“America has faced the unknown since 1776. It’s just that sometimes people focus on the myriad of uncertainties that always exist while at other times they ignore them (usually because the recent past has been uneventful). American business will do fine over time. And stocks will do well just as certainly, since their fate is tied to business performance. Periodic setbacks will occur, yes, but investors and managers are in a game that is heavily stacked in their favor. … The risks of being out of the game are huge compared to the risks of being in it.”
Buffett published these sentiments on March 1, 2013, shortly after the last presidential election cycle. If you review the volume of his writings, you’ll find that he has expressed similar viewpoints on many occasions and through many markets, fair and foul.
Presidential terms are four years long. If you are one of our clients, your investment portfolio has been structured to last a lifetime. Remember that as you consider your personal “What next?” … and please call us if we can assist. And if you are not our client, we still encourage you to give us a call at 203-985-0448. We’d be happy to answer your questions.