Mr. Donald J. Trump is slated to be the 45th President of the United States of America. Mr. Trump clearly won the electoral vote yet lost the popular vote. Mr. Trump and his party will have full control of the Senate and the House.
Short-term political market reactions should be met with skepticism. We all experienced the initial impact of Brexit earlier this year, and we all experienced the relatively rapid recovery. A victory for Mr. Trump was not priced into the markets at their close on Election Day, and it seemed the markets called the election results first with their rapid sharp declines (which did not last) as the results were unfolding. Markets are pragmatic and fundamental and find their way to a fair pricing. An idea Mr. Trump spoke during his campaign is not an executed idea at this point, and we typically do not see quickly being the described speed at which Congress moves. There is still a lot that has to unfold.
We have together worked on long-term plans for your success. In our planning work, we study stress tests on our portfolio allocations, most frequently over a five year period. We have focused on risk tolerance. We have focused on your situation. Historically, markets have not fared as well while a Republican president has been at the helm. However, markets have fared better with a Republican president and a Republican Congress. As we are reminded, historical results are not always accurate predictors of the future. We may make adjustments over time to your allocation and strategy, but the adjustments will not be made as an immediate reaction to the election of Mr. Trump as President and the results of the races locally.
The nation spoke within the constraints of the system it has built. We used a democratic, non-violent process to begin to transition our nationâ€™s leaders. Our votes mattered, and by watching the map, it seemed whether it was a protest vote, a selection of who is perceived as better of two less than desirable candidates, or a vote stemming from passion, you did see unrest and people desiring something different, even if that difference is not precisely defined. Whether Mr. Trump can deliver the something different that the country has called for remains to be seen, and perhaps in four years America will conclude differently. This campaign was clearly more about character than platform, so much will still be seen as the Republican platform led by Mr. Trump unfolds. Since Mr. Trump does not have a history in politics, it will be interesting to watch the team he surrounds himself with.
Regardless of the election results at all levels, it seems this campaign brought out ugliness. And perhaps now some feel a sense of fear. Some may feel relief. Either way, how we treat our neighbor, the values we are raising our families with, what is happening in our homes, who we put in front of our children and grandchildren as role models, how we educate, our participation in our communities, our work ethic and energy we bring to our jobs each day, how me maximize our time and positively influence people whether working or in retirement â€“ this is where we have more control and find exponentially more meaning. As we work with you, we hope to help you have better and meaningful lives, and it seems like this is a good reminder for all of us.