On November 9, 2016 we woke up to an election result that came as a surprise to many. We aren't political pundits so we won't attempt to dissect what happened or how it happened. We also won't take sides and argue over who was right and who was wrong. Just as President Obama, Secretary Clinton and President-Elect Trump expressed in their speeches last night and today, we must now come together and move forward as one country and focus on the future.
Whenever something unexpected like this happens we tend to see the financial markets panic and overreact. Last night we watched markets around the world fall as the election results came in. Today things settled down as everyone had a chance to reflect on what happened and U.S stocks actually finished the day in positive territory. We saw something similar happen after the Brexit vote this summer with an initial decline followed by a quick rebound.
Unfortunately we do not know what will happen next nor will we attempt to guess. Many others will, but as last night's outcome proved once again nobody can predict the future. What we do know is that you shouldn't let the outcome of this election impact the way you invest. We always stress the importance of having a long-term perspective and that has not changed. Your financial goals did not change overnight and neither should your financial plan.
We also like to stress the importance of having a diversified portfolio with exposure to many different asset classes, which helps cushion the shock from events like this. We don't yet know what President Trump's specific policies will be or how they will impact the economy. We do anticipate increased market volatility as we move forward over the next few months as we learn more details of his plans. Just as you shouldn't overreact to last night's news, you should do the same as we navigate these peaks and valleys.
This election exposed a deep divide in America and brought to light many issues we now must fix together. This isn't the first time in our country's history we have faced such challenges, and just as we have in the past we will overcome. We still believe in our democracy, in capitalism and in our future. Politics can be very emotional but it's important for you to separate that emotion from your financial decisions. We are here to help you with that, so if you are concerned about your financial future and how the election results might impact you, please feel free to reach out to us.
The views expressed represent the opinions of L.K. Benson & Company and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial or legal advice or service to any person.
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