posted on January 17th 2017 in Fort Worth CFP Team Posts with 0 Comments /

Since Trump’s election, a lot of people are wondering if their financial plan needs amending. The concern is warranted. The biggest theme underlying a Trump presidency is that we don’t know what to expect on so many fronts. Lots of things are still playing out. Information is still developing. When calculating probabilities based on complex data, our ability to make decisions with conviction is naturally compromised.

There is a lot of emotion involved in elections. Historically speaking, investors like new presidents from a different party than the party that is exiting office but that’s not enough to act on. And, that positive emotion doesn’t tend to last very long. If the new president hasn’t solved everyone’s problems by the morning after inauguration, the masses tend to turn negative. I may be exaggerating a bit when I say the “morning after inauguration,” but I mean the point quite literally that people are biased toward unrealistically short-term time horizons.

As you know, we don’t trade just for the sake of trading. Investing takes discipline. Sometimes we need to wait a bit on things to shake out before we act on the desire to start making changes. Time is our friend, but timing isn’t. We should be ready to make strategic moves when opportunities present themselves rather than scrambling at the last minute and missing open windows. More attempts at timing aren’t the solution, as any of our CERTIFIED FINANCIAL PLANNERS™ would echo. Instead, getting prepared to move should be the focus.

The fact is, it remains to be seen how changes associated with the new president will affect investors. So instead of focusing on what we cannot control, we focus on what we can. Don’t make the mistake of betting on how things might shake out, but on the other hand, don’t want until it is too late to begin planning if you haven’t already.

A lot is subject to change in 2017, so some plans will need to be updated. That isn’t to say all of that change can be attributed to a new presidency. We don’t believe in trying to forecast the future, but we do attempt to understand probabilities and keep you on the right side of them. Further, your actions going forward should be ones that increase your probabilities of success. Make sure you understand what you can control, how you can control it, and have an action plan for execution.

about the author: Joshua I. Wilson CMT

Josh-Wilson CMTJoshua I. Wilson, CMT®, AIF® is a partner and wealth manager who has managed over $2B for TD Ameritrade. Joshua led the national training and development program for all of TDA’s new advisors and managers, won a national coaching award. Joshua gave his graduation speech at Brown University. Joshua is a Chartered Market Technician® (CMT®) and a Accredited Investment Fiduciary® (AIF®).

Learn more and/or Contact Joshua

Continue Reading

Other articles filed under Fort Worth CFP Team Posts

What are the Tax Implications of Options Trading?

June 18, 2018 - Options are a poorly understood asset class to most investors, but have many uses for astute planners. No, we aren’t talking about the type of options your company might grant you, but publicly traded options. For example, adding an options...
Continue Reading

Part 2: Volatile Markets – How the Financial Media Helped Build Demand for Dangerous Products Based on the VIX

March 8, 2018 - To understand what happened in the markets the week of February 5, you need an understanding of the psychological forces behind what happened. The VIX isn't just an index that reflects what's going on with options. It's a psychological measure,...
Continue Reading

Part 1: Volatile Markets – What is “the VIX”?

March 7, 2018 - I’ve gotten a lot of questions about what happened with the markets the week of February 5. Many of the questions are on volatility and "the VIX." Explaining an event caused by many complicated tools can prove very difficult, especially...
Continue Reading

Is It Smart to Invest in Cryptocurrency?

February 15, 2018 - In 2009 with the emergence of Bitcoin, the legitimacy of cryptocurrency was scrutinized and hosted polarizing opinions on whether investing in this highly-complicated digital asset was really...well, an asset to begin with. At its birth, Bitcoin attracted more hobbyists than...
Continue Reading

What are Options & How Risky Are They?

February 11, 2018 - Think of Options Like Insurance Options are essentially tradeable insurance contracts on stocks, indexes and some other investments. It helps to understand the concept of options if you keep in mind that options are insurance, but the terms are different....
Continue Reading

Return to Blog Home