Post-Election Reflections – An Investment Perspective
A Message to our Clients:
Whether you are feeling elated or deflated about the U.S. Elections now completed, we share a few thoughts related to the “What’s next?” that may be on your mind.
There are more than enough political analyses available from even a single Google search, so we do not choose to enter into that fray. With respect to your investments, we offer a quick reminder of how we feel: Ample evidence informs us that it is unwise to alter your 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.
Consider these words by billionaire businessman and 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. Your investment portfolio has been structured to last a lifetime. Remember that as you consider your personal “What’s next?” … and please call us if you would like to discuss these matters.