Surprise Trump Presidency! what about my investments?

If you are like most everyone a Trump presidency (and the market surge) has caught you by surprise. So what to do with your investments?

Short term

First, Breathe, it may be tempting but don't sell anything.  Unless you were making trades late on election night you missed the opportunity to make a quick buck off the election surge.

The bond market took a hit this last week but now is not the time to try and cut your losses. Remember you don’t truly loose anything until you sell your investment. On the other hand with record high stock prices it may be tempting to sell your stocks but if you are in it for the long haul resist that urge.

<

Long term

HSA

Nothing in the campaign indicated that the tax treatment of HSA is going to change so if you are using one as a retirement account keep on trucking.

Portfolio rebalancing

Whenever your next annual rebalancing occurs (probably before any significant legislation is passed) be sure to align your portfolio to expected industry changes. If you are invested in full market funds you are already done! If you have industry specific investments that conflict with Trump's campaign promises you probably want to limited your exposure specifically be wary of risk to the health care, green energy, and trade related industries.

Fixed income

Bond investments are a toss up right now. With the existing prospect of rising interest rates on the horizon holding off on new investments is probably a good idea but with resurgent stocks the yields on bonds have gone up making them more attractive. Additionally, The promised large infrastructure spending will also have an impact on municipal bonds (could be good or bad).

Summary

Don’t make any panic changes right now, simply adjust your investments during your regular yearly rebalancing.