America’s big day has come and gone, and the American people have spoken. The only problem is we still don’t know who’ll be sitting in the White House come Jan. 20, 2021 — at least as of 3 a.m. EST on Nov. 4.
This has been a hard-fought election cycle from both parties, and the uncertainty of the coronavirus disease 2019 (COVID-19) pandemic has only magnified near-term uncertainty for the U.S. economy and fiscal policy, in general. But that’s the great thing about elections: They eventually come to an end. This means investors can get back to what they do best — making money.
Even though we still don’t have perfect clarity on what Capitol Hill will look like in the years to come, investors are strongly encouraged to make the following three money moves right now.
Reassess your holdings
You certainly didn’t need to wait for an election or major event to be told this, but it’s the perfect time to re-evaluate your portfolio holdings.
For much of the past six months, we’ve witnessed Wall Street analysts and investing pundits offer their suggestions on which stocks would perform best if Donald Trump or Joe Biden were elected president. But this short-term pattern of thinking does little good, especially considering that the broader market tends to increase in value over the long run, no matter which political party is in charge.
With the election in the rearview mirror, it’s time for investors to ask themselves one key question about every stock they own: Does the reason I bought into this company still hold true today?
Chances are that the U.S. election had absolutely no effect on the initial investment theses in the company’s you own. If that proves the case, you have no incentive to sell your holdings. If, by some chance, your investment thesis has been broken, either by the election or some other factor, only then would it be advisable to consider selling your stake in a company.
Long story short, reassessing your holdings probably means sitting on your hands and allowing your investment theses to play out.
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