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WJNotes
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The Sun Came Up This Morning

Financial markets typically don’t like surprises, and that’s exactly what we experienced last night in the election for the 45th President of the United States. A surprise given that the majority of the media and pre-election polls indicated a different outcome. Dow futures were down at one point by 800 points prior to the final call. The S&P futures were down by more than 100 points. Yet, in the early trading hours this morning (as of the time of this writing), the U.S. market seems to be taking the result in stride.

So what does this mean for portfolios? Business as usual: stay invested and remain globally diversified across asset classes. We saw what happened after the surprise Brexit announcement in June of this year. The market tumbled and then quickly recovered in a couple of days as it digested the news. The market will move on. Our outlook for lower expected returns in the future remains the same, and we will continue to maintain our conservative positioning for the time being.

Now that this Presidential election is behind us, we can finally take a breather from all the political banter and rhetoric for at least the next year and a half before the next campaign begins. For now, let’s focus on what the Fed will decide to do in December. Stay tuned…

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