We are one week into the election of Donald Trump as the President of the United States. There were plenty of theories on what would happen to the market if Trump was elected, and these theories mainly projected a Brexit like dip. I was even hoping for this outcome. I love to buy, when the market is on sale. When the market dropped after the Brexit vote, I invested $1,000 in the market and I have earned a good chunk of money on that one decision.
On all the election day coverage, they kept predicting a dip in the market on Wednesday. All of these predictions were false. The markets opened and there was no dip. Instead the markets even surged. I was disappointed, because I wanted to invest some money while the markets were on sale.
I think this goes to show you one important thing:
It's hard to predict what the Market will Do.
Lot's of economists predicted a collapse, but it didn't happen. Lot's of economists have been predicting a collapse for a while, but that hasn't happened either. Therefore, you can't be scared by the nightly news. You just have invest every month and don't let the ups and downs of the market scare you into selling your investments. Nobody knows exactly what the market will do and you should not base you actions on these predictions.
I will tell you one thing that I know for certain:
The Market will go down and the Market will go up.
I don't know when these events will occur or how long they will occur, but they will happen. Therefore, stick to your investing plan and don't let the news media scare you into doing something stupid.
So what does the Trump Presidency mean for the market?
I really don't know and there are a lot of people with theories, but those are just theories. There is no way to predict what will happen with a 100% certainty.
Don't change anything. Your life will go on. The market will go up and down. You should to continue to save. You should continue to do things that make you happy. Stop worrying so much about what's going on in Washington and start worrying about what's going on in your household. You are the only person who can affect your savings and your retirement. Make those your top priority and stop worrying so much about a President that does not affect your life.
But if my advice is not good enough for you, here are some articles that I would recommend one the topic.
- How Donald Trump's Presidency will affect the Stock Market - By Rob Berger (owner of doughroller.net)
- How President Trump will affect Your Wallet - By Rob Berger
- President Trump will Make America's Energy Sector Great Again - By Christopher Helman
- Don't Let Politicians Control You Financial Future - By Millenial Money Man
I'm sure there are more articles out there for you to read and research what a President Trump means for your money. In my opinion, it doesn't mean much. A president's policy does not affect your wallet as much as you can with your intensity and self-control.