I am a political junkie. I love it. Lots of people hate this campaign, but I am truly invested in a variety of ways. The biggest reason is because it is part of my job. I teach courses on political communication and this semester I am teaching a course on the campaign. So I am checking polls, articles, and advertisements constantly. So much so that it is actually making me a bit depressed. I probably need a bit of a break.
The election is also affecting the stock market. For the past week or so the market has lost almost 3% and many people predict that if Donald Trump wins the market will go down further. I am no fan of Donald Trump. And I fully admit I will vote for Hillary Clinton. However, the truth is if Trump wins it won’t necessarily effect my personal day to day life much, except for my stock portfolio.
So what am I going to do if Trump wins?
I will stay fully invested. I will not sell stocks. I will not flee. I will stay in. Stocks will be on sale. And I encourage everyone else to do the same.
The president can certainly have an influence on the economy and on the market in general. However, if I am a long-term investor who is focusing on obtaining financial independence (hopefully by 50….7 years from now) then I need to stay in. I need to invest and I need to stay the course.
Plus, I believe in the market. I believe the United States economy, even if Trump is bad for stocks in the short-term and potentially the economy, will right the ship.
The truth is that probability wise we are due for a recession probably in the next couple of years. In the post-WWII era, recessions have occurred every five years and we are on year 7 since the last one.
I am not saying that will happen. I am just saying that don’t be scared of short fluctuations in the market.
I hate that my portfolio is down. I have lost a few thousand dollars over the past week because of the “October surprise” of the election. That said, I am staying in.
I will not be frightened off no matter who wins the presidency. I advise others to do the same. 10 years from now the stock market, in my opinion, will be higher, much higher (I hope) and you will be glad you did. That is what I am going to do.