As Donald Trump has officially defeated Kamala Harris in the U.S. election, anxiety levels have skyrocketed – not just for American citizens, but also for investors across the globe. Searches to purchase Donald Trump’s stocks have already begun to soar, and many are speculating how the cryptocurrency market will be impacted due to Trump’s ties with Elon Musk.
With many panicking about how this election result will impact both the global economy and personal finances, experts at the financial comparison site Good Money Guide have offered advice on how to prevent money-related anxiety in the aftermath of the election result.
Don’t make panicked decisions
With the election result having just been announced, it’s crucial not to make any rushed decisions when it comes to investing or purchasing stocks. While it’s expected that Donald Trump’s stocks and crypto market will soar in popularity, it’s essential to not make any hasty choices in the immediate aftermath of the election result.
Instead, consider whether your investment would be truly beneficial in the long run or whether you’re just seeking short-term gratification. Over the next few days, it’s important to sleep on any important financial decisions and consider whether these are coming from an emotional or logical perspective.
Implement the 48-hour rule, in which you come back to your decision in two days’ time. If the decision still seems logical, take the plunge; however, it’s important to give yourself space to thoroughly consider any financial decisions in the coming days.
Consider each candidate’s values
When considering investments over the next few days, it’s important to contemplate Trump’s values. For example, while Trump seeks to boost defence spending, Harris’ campaign focused more on healthcare and other ESG investments.
With Trump’s victory in the election, it could be worthwhile to consider defence, banking and energy sectors for investment gains.
In the aftermath of the election, it’s essential to thoroughly research Trump’s policies when making investment decisions to understand how the worldwide economy will be impacted.
It’s also important to consider the influential figures backing each candidate. For example, Trump is backed by the richest person in the world – Elon Musk. This means that it will also be valuable to research stocks affiliated with Musk over the next few days, such as Tesla. Bitcoin prices are also expected to rise temporarily as Trump has strongly endorsed cryptocurrencies throughout his campaign.
Spend less time on social media
With the election result having just been announced, it’s important to take time away from social media to reduce anxiety levels. The media has a habit of sensationalising events, which can increase panic levels.
Over the next few days, it’s important not to let any financial decisions be fuelled by panic. Instead, take some time away from your phone and ensure that you’re not taking news from social media as fact.
Richard Berry, the Managing Director of Good Money Guide, has commented:
“Seeing as the current UK government has done such a great job of punishing investors and businesses through tax rises, it’s no surprise that pro-business Trump has secured a victory in America.
“However, the S&P 500’s continued rally suggests the stock market expects stability, which, whatever happens, I don’t think it’s going to get shortly after the results are announced.
“Most UK investors are heavily invested in America through their pensions, funds and ETFs without even knowing it, so what happens in the U.S. has a huge impact on the UK economy.
“Trump may offer some relief to British investors who’ve been blindsided by a £40 billion tax increase in the latest UK Budget. However, civil unrest caused by a contested election decision may put the dollar’s future at stake, meaning that Beijing and Moscow could be the quiet winners if U.S. fiscal stability is lost.
“A decisive win could offer the global stability needed to counter the recent UK Budget’s impact on growth and shareholder confidence.
“Ultimately, it’s important to stress that whatever happens, don’t panic. Investors need to keep calm and carry on by focusing on their long-term plans rather than falling victim to short-term panic.” This information was provided by experts at the financial comparison site, Good Money Guide.
