First Brexit, then the Cubs, now Trump - 2016 has been nothing if not full of surprises! After months of Hillary Clinton holding the lead in polls forecasting the presidential race, Donald Trump has surpassed these predictions to gain the majority of electoral votes and become president-elect of the United States.
Markets were not expecting this either. With a Clinton win, markets were projected to hold steady, as it would have been a continuance of what they've seen with a Democrat in the White House. Currently, markets are grappling with some uncertainty, and we're seeing volatility due to an unexpected incoming Republican supermajority and Trump presidency. We saw the futures markets fall election night, but throughout the trading day so far, markets have remained resilient. What is important to note is that any market movement right now is due to the surprise of the election results rather than any actual changes to legislation or policy.
Our expectation is that there will be volatility short-term. While this disruption may last several months, we know that large swings like this are normal in the investment experience. Like Brexit earlier this year, these results present us with many unknowns; still, history has shown that markets tend to reward those who stay invested for the long haul.
Though the market reaction may feel uncomfortable right now, we are not concerned about a negative impact in the long term. Instead, we will continue to be proactive in making moves to help retain balance in portfolios. We will continue to monitor portfolios on a daily basis, as we always do. While we expect markets to be in flux in the upcoming months, rest assured that we will take action to keep all portfolios in balance and take advantage of opportunities as they arise.
We will be watching to see if this election has an impact on markets over the next couple of weeks. We will email more information as that solidifies. If you have specific questions you would like us to address, feel free to give us a call at 414-768-1984.
We are all in this together.