What does a Trump presidency mean for the stock market?
November 9, 2016
"It's obviously not the outcome that the markets had expected, or, frankly, we expected," said Dan Eye, CFA for Harrisburg-based Roof Advisory Group.
But, he added, knee-jerk market declines are common after presidential elections. Domestic equity markets have fallen after 15 of the last 22 elections, by on average 1.8 percent. And they often recovered within weeks or months of Election Day.
As for long-term effects of a Trump presidency, Eye noted the person sitting in the Oval Office is only one of many factors affecting investments.
The overall economic picture for the U.S. is good, he said. Corporate earnings have turned positive after five straight quarterly declines, economic growth has rebounded from earlier in the year and employment rates have steadily grown.
"There's a big picture to look at here," Eye said.
Still, only time will tell which campaign promises Trump will, or will not be able to, keep. Those answers are far from certain given the fierce rhetoric that underscored much of the campaign, Eye said.
For now, Roof Advisory is among the firms telling clients not to take the post-election slump as an indicator of problems to come.
"Fundamentals are looking better than they have in some time," Eye said. "You don't want to lose sight of that."