A Message On Inauguration Day
As Donald Trump takes the office as our 45th president, Michael Conway discusses how investors should maintain a long-term mindset.
Speaker 1: Equity markets rallied after Donald Trump was elected, likely on the idea that his policies to cut taxes, ease regulation, and deliver infrastructure spending may in fact improve the economy. It’s important to note that capital flowed out of emerging markets and bonds suffered losses as interest rates went up. Media outlets, which tend to narrowly focus on US stocks, missed the fact that a lot of what investors own actually went down in value after the election. Today marks the day that our 45th president takes office. Investors will await substance as we watch to see what actually gets accomplished and how markets will respond. It’s difficult to discern how actual governance will deviate from campaign rhetoric. Mr. Trump will bring to the presidency an unorthodox approach of one-liners and Tweets that will continue to close the markets to gyrate on a weekly, if not daily, basis. Markets hate uncertainty and love clarity. As with any new presidency, we hope for success for our country going forward. We look forward to seeing how Trump’s plans come to fruition. In the meantime, we should continue to keep a long-term mindset.