Critically, we need to determine your personal risk appetite; how much volatility and potential loss you are willing to accept to achieve higher long-term returns. Put more directly, what is your capacity or willingness to suffer & endure stock market losses, for the probability of greater gain in the future.
This is currently more complex than normal, because it’s clearly such an emotional time for half the country. Understandably perhaps, many investors are finding it difficult to separate their strong feelings about politics from the often much simpler dynamics that drive financial markets. In recent months, the S&P 500 has reached new record highs, driven largely by continued profit growth at big American companies.
A key part of what we do is help clients stay focused on the fundamentals that drive long-term investing and reconcile those with other deeply held personal concerns. Your long-term goals, like funding your retirement, remain just as important, regardless of who’s in office. We can help you think about how your investment strategy can align with both your goals and your comfort level.