I remember the Crash of October 1987, the crash that followed the collapse of the Russian Ruble in 1998, the crash in the days following the World Trade Center attacks of 2001 and the crash that followed the Collapse of the Mortgage Bubble of 2008.
I remember lots of smaller shocks, too.
But after every one, whether it was days, weeks or months, the markets bottomed and resumed their long upward path, as the force that caused the crash was eclipsed by the realization that our country’s business, and the markets that support it, would continue as usual.
And I expect nothing less once the shock of Donald Trump’s victory passes and investors realize that our economic system will continue.
Furthermore, relevant to the Cabot Stock of the Month portfolio, I’ve learned that success comes not from joining the crowd but from being just a little bit smarter, and often, a little more patient.
So, while many investors will be selling stocks in panic today, fearful of the unknown, I recommend that you sit calmly. Wait for the panic to pass and the dust to settle. My guess is that we will find stocks to sell in the weeks ahead, but any selling will be done with a clear head and, as usual, in adherence to proven rules.
More optimistically, the panic selling is likely to lead to some buying opportunities, and that’s something I’m looking forward too.