Post Election Thoughts
I think most of us wonder what a Trump Presidency will mean to investment markets in the coming months and years. I know one thing: guessing the future is as futile with Mr. Trump in the White House as anyone else who sits there. It seems to be a fundamental human characteristic to try to anticipate the future. I think it might have something to do with our survival instinct. Back when we were gathering berries and avoiding saber tooth tigers, it might have been important for our survival try to anticipate the future. “Is that sound in the bush a tiger that might eat me or is it my friend Yokum trying to scare me?”
It might also be that we are hard wired to be greedy and being right in guessing the future is one way to success. That’s what bettors at the horse track do. “If Old Nelly in the third is 20-1 odds and she wins, I’ll make a bunch of money.”
As investors, we move between the Twin Towers of fear and greed all the time. Yet, the smart investor knows that moving one way or the other too far leads to failure. Thus, my advice when it comes to the election results is to stay the course and don’t react one way or the other. Your emotions about the election will get you into trouble.