How Should You Invest Now?
Trump wins unexpectedly.
What are we reminded of from an investment standpoint?
The chart above that we posted after the Brexit vote and will probably publish again someday.
We’re also reminded that uncertainty is relatively consistent and that, consistently, emotion leads us to make investment changes in the face of uncertainty at the wrong time.
Before the market opened on the day after the election, we had received at least 10 invitations to hear from leading Wall Street analysts and strategy professionals about what their crystal balls suggest investors should do now (more continue to come in and yes, the post-election-day stock market down 800 points before the open and rally to finish up approximately 260 points is creating graphs that look just like the emotion chart).
We dialed into many of the calls because, we want to understand and respect what are sure to be differing opinions.
What did we do?
Strive to avoid making changes.
Why?
Not because we don’t believe we shouldn’t constantly be asking ourselves how we can be better.
But, because being better often means resisting overly tactical moves and sticking to a long-term plan.
Very consistently, and again this past Fall, the following holds true:
- Analysts and strategists are never in doubt, but often wrong.
- Individual and professional investors make investment changes at the wrong time.
We have written about this before, so we are keeping this relatively short, but please click on the following or below under Related Reading to read more of our thoughts on the points mentioned above:
What Should Investors Do About ____?
(Changed the title because we are sure the message will be appropriate sometime again soon – the post includes the same cycle of emotions chart and links to data in other articles)
Chicken Fried & Cold Beer
(Adding a smile here for the day and includes a list of “Don’t” bullets for Wall Street and investors to consider)
Importantly, know that we are here and available to lend an ear or answer any questions you may have.
Please call us at 617-602-1900 or email us personally at preston@fwp.partners or james@fwp.partners
All the Best,
Preston & Jamie
Related Reading:
Staying Disciplined and Avoiding Unforced Errors 