Clinton, or Trump? The Market Doesn’t Care

Clinton, or Trump? The Market Doesn’t Care by Jeff Holland{1:50 minutes to read} While the Presidential election is very important to the United States, its impact on one’s long term planning is zero.

The election is very contentious. People have their personal preference over the candidates. Many people despise Donald Trump, and many people despise Hillary Clinton.

Regardless of who gets the office, there’s no advantage to the market. Capitalism still requires a rate of return to businesses.

Even more importantly, if there were an advantage, it would be something out of our control. We can only control what we can control, which is not who is going to be elected.

Let’s hypothetically say that, in the past, Democrats have done better than Republicans in office. In terms of the market, it doesn’t matter, because capitalism works regardless of the President. Investors still get a premium for owning securities.

If you feel that the wrong person gets into office, and your reaction is to get out of stocks, that’s the wrong thing to do. Expected returns of the market and who is President are unrelated. History has shown that being a long-term investor in global portfolios has rewarded investors.

Don’t make a short-term or long-term investment decision based on political elections. Contact us with questions or comments at

Read the article below to learn more about the effect of an election on your investments:

Market Returns During Election Years by Via Four

Jeff Holland

Leave a Reply