After a long year of waiting, our country and the world has the answer to the all-important question of which individual and political party will lead the free world into the next chapter of history. Arguably, the nation has never witnessed a presidential campaign or election quite like this one. Many investors were not expecting its outcome, so a great degree of volatility is affecting Wall Street, and may continue to do so for weeks as we adjust to the new environment.
We are very aware that the outcome of the presidential election is exciting for some of you and disappointing for others. We understand that our clients are feeling a wide variety of emotions right now, some are fearful and uncertain about the future while others are hopeful and relieved. Investing is a very personal process, and we respect your emotions and your beliefs about how you may be affected by Mr. Trump’s victory. We welcome your calls and e-mails, and we stand ready to support you and ensure that your investing strategy is appropriate for you.
News of Donald Trump’s election victory did not completely upend the international equities markets. While the Nikkei 225 sank 5.36% overnight, the Shanghai Composite slipped 0.62%, the Sensex 1.23%, and the Hang Seng 2.16%. In Europe, there were notable gains: the FTSE 100 rose 1.00%, the Stoxx Europe 600 1.46%, the CAC-40 1.49%, and the DAX 1.56%. In North America* the Mexican IPC All-Share dropped 1.80% while the Canadian S&P/TSX Composite advanced 0.70%.1
Yesterday, Wall Street quickly rallied. Some analysts had feared the worst Wednesday morning, but a half-hour after the opening bell, the Dow Jones Industrial Average was up 28 points. Three hours into the trading session, the Dow had gained 179 points, the S&P 16, and the Nasdaq 27. Today, markets have again shown volatility, with some indices trading higher and some trading lower.
The fact that the sky did not fall on Wall Street following an unanticipated presidential election outcome illustrates the market’s strength. Political developments are but one of many factors influencing market performance. Stay patient through these changes, and maintain a balanced and long-term perspective as you pursue your savings and investment goals. America has shown great faith in its institutions and its democracy, and that will undoubtedly help. We encourage you to remember that market disruptions are not the norm but the exception.
We encourage you to reach out to us, as we want to provide reliable information and advice to you when you need it most.