According to the November issue of Fortune Magazine, while 2017 still may be a rough year for the financial markets, history shows us that after each election, no matter who wins, there is a dip in the market that corrects itself. We have the benefit of hindsight that the article’s author, Taylor Tepper, (a staff writer at Money) didn’t have. We KNOW the finale of the election results.
What comes through in the November article is: while The President can have a major impact on our day-to-day lives, presidential politics has a very minor impact on the stock markets. Over the long run.
Keeping Emotions in Check
The one thing that can be said about this presidential election is that: emotionally, this was probably one of the most volatile races ever run. Based on campaign speeches and Donald Trump’s win, logically, investors should focus on coal miners, small-cap U.S. companies, and any construction company that might benefit from a wall being built. But that type of logic doesn’t hold true historically. Based on that, in 2008 (post-Obama win), the firearms market should have died. Smith & Wesson stock is up 900% of what it was five years ago, whereas clean energy is down 49%. Go figure.
Recession Coming? Oh yeah.
Taylor Tepper‘s Fortune article: “Over the past 150 years, the average economic expansion has lasted about 39 months. The current upturn, which began in June 2009, shortly after Obama took office, is in its 89th month, making it the fourth-longest since the Civil War. This means, if history is any indication, that either of today’s candidates is relatively likely to confront a recession early in his
or her administration.”
What Can My Organization Do to Thrive?
Now is the time to start planning your strategy for the next 4 years. Certain industries are more recession-proof than others. Healthcare, for instance, is typically not impacted as much by a dip in the economy. But leveraging for growth can at least help level your revenue.
- Know what regulation & legislation is coming in the future in terms of your industry.
- Plan a strategy for growth while accommodating legislative trends.
- Get your views on upcoming legislation heard by the right people in power.
- Draft new legislation that protects the values and needs of your organization.