Emotions Running High, Markets Go Low(er)?

The Weekly is early this week, and you know why. Markets look as if they might experience some heavy volatility, on the heels of a shocking presidential election result. The betting money was not on Trump, but apparently enough of the country’s electoral votes were. As a result, investors around the world are making investment choices to reflect their vision for what is to come.

Please don’t panic as an investor. There will be plenty of time to sort through all of this as emotions soften. We’re all experiencing a high level of emotion right now, whether it’s the feeling of vindication that comes from seeing your vote on the winning side, or the deep despair of feeling that you no longer know who your neighbor is or what they believe. Either way, a cool hand and a steady state will result in better long-term investment decisions.

I’m going to take a risk and offer as political a comment as I’ll offer: there should be some amount of grieving this morning on either side of party lines. Naturally, a person who voted for someone other than Trump will feel slighted, frustrated, maybe even angry at the fact that so many other Americans can feel so differently about this election. That’s a lonely place to be, and we’ve all been there at some point in our lives.

If you voted for Trump, I think some grieving is also appropriate, albeit a bit more nuanced. A victory for your political views feels good, and having the issues most important to you affirmed offers hope for the future. The grieving comes when you recognize that many of your fellow Americans: friends, family, co-workers, are hurting right now. They simply cannot understand how you could feel the way you do and voted the way you did. How could you? I think some grieving over this will lead to greater sensitivity and restored relationships.

Like everything in life, nothing is simple. Investing requires patience and acceptance of risk to achieve a level of security long-term. Voting is complex because we may achieve a political victory while having some very real side effects. I wish life was simpler. I also wish I was taller.

As you wrestle with your feelings toward this election, and your relationships with people for whom you care very much – but disagree with – I hope you’ll allow yourself the time necessary to embrace your emotions, while not always acting on them. Easier said than done, I know.

As always, please reach out to me if you’d like to talk further. I don’t have all the answers but I’m happy to listen and figure things out with you.

Look for the next edition of the Weekly next Friday!