We elected real estate mogul and reality TV star Donald J. Trump to the highest office in the land, and in doing so, made him perhaps the most powerful person in the world. Considering Trump's reputation for doing or saying anything for media coverage, many were worried about the instability he might bring to...well, everything.
Here's what some well-known market participants had to say around election time:
"Even if Donald wins, I have no doubt in my mind the market tanks."
- Mark Cuban
"It really does look now like President Donald J. Trump, and the market is plunging. When might we expect them to recover? If the question is when the markets might recover, a first-pass answer is never."
- Paul Krugman
"In preparation for a completely unpredictable Trump presidency, I sold all stocks in my children's education accounts today. I urge you to do the same."
- Kurt Eichenwald
Assuming Cuban, Krugman and Eichenwald did follow through on their promises and cash out of the market, they're no doubt kicking themselves now. Not only has 2017 been a positive year in the markets, but we haven't experienced a single negative month since Trump was elected. Investing is a zero-sum proposition, which means their loss is your gain.
Unfortunately for these smart, successful, and famous men, the market does not care who sits in the Oval Office. Conservatives learned this lesson when Obama was elected President, and liberals are learning it now.
Making investment decisions based on politics is not a viable strategy. The market's performance this year is yet more proof of that.
Credit for the quotes: A Wealth of Common Sense