It has been one week since Donald Trump became our 45 president elect. Unless you have had your head in the sand for the last year, you know how controversial this election has been. Especially now after Donald Trump’s historic upset over Hillary Clinton.
I’ve stated before on this blog that I am fairly moderate. I am rather conservative economically (less government, low taxes, pro small business) and quite progressive socially (more gun control, gay marriage, marijuana legalization for tax revenue, pro choice). I truly believe a lot of Americans feel this way and are squarely in the middle of politics as “moderate”.
However, roughly 50% of the country woke up last Wednesday on November 9th to a president they are severely disappointed with. Well, regardless of where you stand, what’s done is done and its time for us all to look ahead to four years with Donald Trump as our president of the United States of America.
What comes next for the markets after Donald Trump’s win
Did you know the market dropped $1 trillion Tuesday night during the election as it became more and more clear Donald Trump was going to be our 45th president elect? However, less than 24 hours later on Wednesday, the markets closed by being up $1.3 trillion. Meaning the market capitalization Wednesday once we knew Trump was elected actually gained $3 billion.
Regardless of your political affiliation, the one thing we can all agree on is a thriving economy with excellent job creation, as well as a thriving stock market. It obviously remains to be seen what exactly Trump can and will do with our economy and stock market. I’ve read a ton of articles over the last few days and the consensus seems split (shocking, huh?). A number of both financial pundits and economists sees pros and cons to Trumps overall plans.
The one thing I can say with absolute certainty, and I know every sane financial planner and economist would agree with me on, is to continue investing. NOT investing because you don’t like the president is a really uneducated, emotional reaction you will strongly regret later in life. This type of conjecture is out there every time we have a new president and half the country is disappointed and expecting the worse. Not the case.
Donald Trump does not dictate your personal success or financial well being. You can become wealthy under any party in control at the White House. You can also go dead-broke and be in debt up to your eyeballs with any president.
Let’s say those who vehemently oppose Trump are right (Democrats and many Republicans do) and he turns into an abject disaster. Without saying that is really bad for the short term, but long term (investing-wise) it would be a market correction. If you keep investing during a “bad” market over the Trump term then you essentially get to buy more funds on sale.
I once read in a finance book where Warren Buffett was quoted as saying you actually want a down market to buy stocks at cheaper prices. If you invest regularly, you want to buy them at a good value, not at their highest each and every time. He liken it to someone who eats meat every day…you do not want meat prices to keep rising do you? Same goes for those who buy into the stock market regularly.
What to do now that Trump will be President?
All I want to stress to my readers is to live below your means. Spend well less than you make. Save substantially more than what feels comfortable (at least 15%, if not much more). Try not to compare yourself to others and keep up with the Jones. Invest regularly into diversified index funds for the long haul. And repeat.
You control your own financial independence. Not Donald Trump, not Hillary Clinton, not the government. Its time to move on and take matters into your own hands. Please, please, please keep investing into the stock market. This is your only way to get wealthy but it will take time…like another 3-5 presidents actually. So don’t let this one (Trump) get you down. Keep on keeping on and invest.