Policy
No matter your party affiliation, it's clear what the markets wanted from the presidential election: decisiveness. The Dow rallied 1,508 points yesterday followed by large gains in the NASDAQ and S&P 500. The consensus going into Tuesday was that the final result would take days to declare and would likely be contested by either candidate. Unsurprisingly, the consensus was wrong and Vice President Harris made her conciliation speech yesterday. Investors should glean from this event not so much from upcoming policy changes but the importance of staying calm and properly investing through the headlines.
Our team received numerous client inquiries before Tuesday trying to position for their expected outcome of the election. The general theme was to derisk and several clients queried about buying gold. Both would have been a mistake given yesterday’s market and we stood steadfast in our allocation noting that a longer-term approach is prudent. Our decades of experience have taught us that abrupt decisions produce lower returns and our job is to keep clients focused on their financial objectives. Now that the results are confirmed, policy direction and the correlation to investments are in the crosshairs. But that’s on our team here at Warcap and we’re already well into numbers crunching.
As always, I appreciate your continued trust and confidence.
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