The daily activity of the S&P 500 Index certainly proves the election had no true effect as the market continued its rise. Historically, there is really no correlation between the presidential election winner and the markets subsequent movement.
One of my favorite subscribers, Duane, asked me the following: “if you have money sitting in cash, would it be wise to invest it all now, or add a little more? My answer is simple. If you believe the markets short term explosive rise is because of the new president elect, do not.
The reality is that you should follow the Members Guiderules so as to try and not miss large market gains, and avoid the bulk of market declines. No one can predict market moves accurately, so it is easier to simply follow some solid guidelines to long term gains and capital preservation.
As you see in the chart below, avoiding the declines could be just as important as making the gains. And a decline is just around the corner.
InterAnalyst has been serving investors globally since 1990. Authoring hundreds financial articles and publications, thousands of trading charts to investors worldwide.