American election election day voting begins. Putman Julian Cook: no need to hurry up investment deployment for the election results.
2024-11-05 15:26
Zhitongcaijing
Cook said that regardless of who is elected, he suggests that there is no need to quickly adjust asset allocation.
The US presidential election will officially take place on Tuesday, and the race between Republican candidate Trump and Democratic candidate Harris is intense. Julian Cook, a portfolio expert at Provis America, said preparing for the results of the US presidential election is like flipping a coin. He learned from past election experiences that investors actually have more time to adjust their portfolios and do not need to rush to make investment deployments before the election.
Cook pointed out that in 2016, when Trump won the election, the market was surprised. The two most obvious trends in the market at that time were buying energy stocks and financial stocks because people expected inflation to return. However, in the following four years, energy stocks prices fell by 50%, while technology stocks, non-essential consumer stocks, and healthcare stocks rose by 180%, 112%, and 80% respectively. But no one suggested buying healthcare stocks and non-essential consumer stocks that year.
In 2020, when the Democrats took office, the market anticipated a green agenda from the government. "If you bought the solar ETF at that time, you would have lost 50% in the following four years, while the overall market rose by 60% during the same period." Looking at the investment market performance after two presidential election results, it is clear that investors should not let election news affect their allocation decisions.
Cook also said that there may be differences between the promises made by presidential candidates during their campaigns and their actual actions once in office. Regardless of who is elected, Cook advises not to adjust asset allocation quickly, as real-time market reactions may not be accurate, and you will not know how many of their promises will be fulfilled.