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2 Quick Tips for Investing in the Era of President Trump

Credit: Gage Skidmore

Last week, Donald Trump was elected as the President of United States.   

The result was a surprise as polls had favoured Hillary Clinton for the win. As the vote count progressed, markets around the world reacted with volatility. And as Trump emerged as the President-elect, the financial media switched gears to defining what stocks would benefit from his economic policies.

For the common investor, there might be questions over what a Trump presidency means for investing.

With that in mind, here’re two tips which could help you along the way:

1. We can’t predict the next four years – click here

2. Time is your friend, impulse is your enemy

Big news like the U.S. Presidential election can make us feel that we should take action on our investments. But let’s keep John Bogle’s quote in mind:

Jack Bogle is the founder of Vanguard Group. Vanguard Group is most famous for creating and managing passive Exchange-traded Funds (ETFs) that tracks the market. In Singapore, The SPDR STI ETF (SGX: ES3) is one example of an index-tracking exchange traded fund. The ETF matches the fundamentals of the market barometer, the Straits Times Index (SGX: ^STI).

Bogle is also an investor, and his quote above is insightful on when it comes to major news like the U.S. Presidential elections.

He regards the impulse to act as the enemy to investing.

If we think about it, Bogle has a point. President-elect Trump will be sworn in as President in January next year. Trump has outlined some of his policies, but we do not know how his policies are going to play out until it is implemented.

If we act because of things we do not know, we could be acting on our impulse to do something. That might not be a great investing strategy.

As investors, we might want to keep our eyes on the business behind the ticker instead.  

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.