How to invest for success following the US presidential election

Category: financial planning & Financial Planning for individuals/families & Investments

Assuming the US presidential election took place yesterday, this is how to position your portfolio – Andy Hart 

You will all now know that yesterday (8 November 2016) was a historic day for our planet. The new leader of the free world was announced. So how should you position your portfolio in the light of the fact that President Clinton/Trump is now at the helm?

Winner: Hilary Clinton

After a close battle with Mr Trump we can now confirm Mrs Hilary Clinton won by a close margin and will now be running the most influential country on planet earth. Here’s how I think you should position your portfolio.

Winner: Donald Trump

After a close battle with Mrs Clinton we can now confirm Mr Donald Trump won by a close margin and will now be running the most influential country on planet earth. Here’s how I think you should position your portfolio.

How to position your portfolio under the new President:

What we really want to know is how will the markets react to this Trump/Clinton win?

If you have any understanding of history and markets you will realise that we have absolutely no idea how the markets will perform/react/move.

If anyone tells you differently they are lying to you. I’ll repeat, they are lying to you. This is not a mistake on their behalf; it’s an outright lie. You should be afraid of liars. Certainly when it comes to the long-term financial and life success of you and your family.

The markets my friend may go up, may go down, may stay the same. The short term ‘movement’ is unknowable, always was, always will be. This is wisdom and an investment truth. No one knows where the market will be heading in the short term. If it heads in the direction someone thought or claimed it would, this is an example of hindsight bias, waiting for something to happen and then claiming perfect foresight in hindsight.

A well-crafted globally diversified lifetime investment portfolio (which you should already have) is built with foresight in mind – in that it is well spread geographically and also contains thousands of individual securities (stocks, bonds) to weather all market storms and absorb the latest panics and crisis which will be thrown at it.

Reacting to current noise and, God forbid, ‘positioning’ your portfolio is a fool’s errand.

The talking heads will be shouting down the house and trying to get your attention with what they think you should now do with your portfolio. A sure fire strategy to misbehave yourself to poverty would be to make long-term investment decisions by listening to an ‘expert’ on the big flat screen panel.

Remember they’ve probably never sat in a room with a family, looked into the whites of their eyes and asked them about their hopes, dreams and fears for the future. They’ve never guided a family with care and consideration and told them how to invest their family’s life savings. The only people qualified, from an intelligence and emotional point of view to guide you are caring, compassionate, lifetime financial advisers.

If you don’t have one, seek one out. It’ll be the best investment of your entire life, period. The bulk of the fee (investment) you will pay is for them to be rational during times of irrationality. And thereby keep you rational too. Periods of irrationality are increasing in both frequency and intensity.

The end of the world (your investments) is happening more frequently and expert financial advisers are having to talk their clients off the ledge or away from the loaded gun more frequently then we would like. This is because the echo chamber of modern media and expert opinion has been amplified to an unprecedented level.

If ever there was a time for a professional to have clarity over history and understand the capitalist machine (the stock market) it’s now. If you had Warren Buffet as your financial adviser he’d tell you to put your money into a low cost index fund and never react to the markets. He has said this on many occasions. If the world’s most successful, intelligent investor is consistently telling you this, then common sense says that it pays to listen.

If you haven’t got the gist of this article yet, I’ll make it abundantly clear. Come 9th November 2016, whoever’s name is on the Oval Office door will have zero impact on your 20/30/40 year investment plan.

How to truly invest for success

Expect a lot of noise and panic prediction from the mainstream and financial media in the wake of the Presidential election. It is in their interests to do so and they will do all they can to derail the clarity in your thinking and as a result, your financial plan. It’s their agenda they’re working to – not yours.

But that is the way to destroy your family’s long-term financial success. Acting on impulse is a sure fire way to investment hell; foresight, strategy and belief is the only way success will be possible.

My advice is to block out this noise by seeking out a caring, compassionate financial adviser who will guide you with tough love and sound financial and investment thinking to ensure you behave yourself to wealth and not misbehave your way to poverty.

Please reread this post on the 9th November, as I guarantee you, most ‘experts’ will be lining up to advise you on how to (incorrectly) ‘position’ your portfolio (family’s life savings) when no earthy soul knows how the market will react.

Source – Andy Hart

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