I wanted to touch base with you all as I know there are a lot of questions about the impact on your money given the results of the election last night. This is not a political commentary, there is plenty of that out there for you in other forums.
I wrote a similar email to this, focusing on the impact to your financial life, over the summer when the vote on Brexit occurred.
One thing that is consistent about financial markets is that they do not like uncertainty. When the polling is incorrect, and a different result than was expected by many occurs, it brings on uncertainty.
Last night at around 1:00 am (while I was emailing with some of you) the futures markets had the S&P down around 5% because of this uncertainty. As of this writing around 8:00 am, that has come back to down only about 1%. I'm sure it will look much different than that by the time you receive and read this today (in what direction is anyone's guess).
Just as was the case when I wrote the email during the market fall upon the Brexit vote, we have continued to hold a higher than normal position of cash in most of our discretionary managed accounts. This is due to our normal re-balancing process and our philosophy of setting lower prices to buy back into investments (The goal is to try to take the emotion out of "buy-low, sell-high"). Should the markets move in a downward direction in the short term, you could see those funds invested. We are not trying to time the markets. It is simply following our long term investment philosophy based upon the specific level of risk for you, your time horizon for using the money, and your goals.
I want to emphasize 2 things for you today:
1) If you are feeling anxious about the impact on your financial life, know that that is a normal reaction when there is uncertainty in the markets.
2) Most importantly, we are here for you. If you want to discuss your situation in more detail, do not hesitate to reach out.