Politics and Share Price Movement

Who will win the Presidential election of the United States of America? Trump or Hillary? When polls show Donald Trump is closing the gap with Hillary Clinton in recent days, the Dow Jones Industrial Average declined. A potential win by Donald Trump seems to cause the jitter among investors and fund managers. Politics has impact on how share prices move.

I ask myself if this is logical. The election result is a future event. Why are we so fixated with future event with its uncertainty? For one, Trump may not win. If Trump did win, his actual policies may or may not be the same as the ones spoken during the election campaign.

We are not living in the present by projecting into the future. It becomes speculative to project into the future. There will be too many permutations on game plans with each possible scenario. This is too tiring and not profitable use of our mental energies.

For me, I treat these as “noise” to investing. I would spend my time on taking actions when the actual event happens. Whether Trump or Hillary wins, I would just wait for the result on 8 November. I am not going to speculate.

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

This entry was posted in Financial Management. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s