LONGMEADOW, Mass. (WWLP) – What happens in American politics impacts stock markets around the world. As investors around the world watched electoral votes for Donald Trump add up, Dow futures plummeted 900 points, lower than they were in the aftermath of the September 11 attacks.
“Most international investors had a Hillary strategy. They didn’t even think to set up a Trump strategy,” said financial advisor Mark Teed, senior vice president of investments at Raymond James and Associates.
Mark Teed told 22News, the world already knew how the Clintons handle the economy, but Trump’s reputation as a successful businessman wasn’t enough.
“I think that’s a plus for him, but I think people in the market look at it as naiveté. That he thinks he can take a business approach and apply it to politics, so I think there’s concern that he’s way over his head here and we’ll see what kind of appointments he makes,” Teed told 22News.
Until then, he said investors are selling their stocks for cash or less risky investments. He said this is all short-term uncertainty.
So what does this mean for your 401K, especially if you’re retiring soon? Well, Teed said not to worry. He said the stock markets are expected to bounce back in just a few weeks once the world finds out new information of what a Trump presidency will really look like. 22News spoke with people concerned about their finances…but others were confident in their long-term investments.
“What we need to look at is Brexit and what happened in Europe and England with Brexit. The stock market took a big hit and then within two weeks, everything calmed down and everybody realized when you look at the global economy, it’s pretty solid and I think we’ll all be okay in a couple of weeks,” said Tim Barry of Somers, Connecticut.
By opening bell on Wall Street Wednesday, the Dow had already recovered from its dramatic drop overnight to open down 360 points. Experts believe Trump’s victory speech may have helped in that recovery.