If we look close enough; The United States' recent presidential election (electing outsider Trump) and Brexit should tell us a great deal about the stock market.
I made attempts to convey this message in my last blog, titled “Dooms Day Or Election Day- whatever you prefer to call it- (How Should I Position Myself?)" and I will try my best to reinforce this core principle I have known for quite some time about the stock market in this blog.
Simply put, the stock market does what it wants!
We can look to distant history to illustrate this point but recent events convey this as well. Electing Trump as the “Leader of the Free World” and Brexit did not cause a sustained market crash like all the pundits indicated. It is true that both events saw major sell-offs but the markets rebounded in both instances and went on to achieve all-time highs. I say all this to say; try your best not to ascribe an outcome in the stock market to events (barring a World War).
It truly is hard to determine how traders will react, so the best thing you can do for yourself is to tune out the noise and stick to your methodology.
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