Financial planner Timothy LaPean is watching a wave of fear and confusion sweep over clients after Donald Trump's stunning election as U.S. president.
They aren't just freaking out about their investments. In a sign of the impact of Trump's victory on those who didn't vote for the Republican, the Minneapolis-based certified financial planner says he's also fielding calls from clients who are women or members of the lesbian, gay, bisexual, and transgender community that go straight to their personal safety.
Then there are the meat-and-potatoes personal finance concerns. Here's a sampling—and what planners are advising.
You’re buying companies, not politicians
That's what Howard Pressman, a certified financial planner with Egan, Berger & Weiner, LLC, in Vienna, Va., reminds his clients: "The key thing to bear in mind is that the U.S. economy remains healthy and has shown itself to be quite resilient."
Ed Vargo, a private wealth manager at Burning River Advisory Group in Westlake, Ohio, suggests taking an even broader view. His advice? Ask yourself: "Do companies still want to maximize shareholder value? Do the great companies of America (and the world) still want to put out great products and services and provide a compelling place for employees to work? Do parents still want their kids to be educated and have more than they have? Do workers still want to retire at a reasonable age and enjoy their golden years? In short, do people and companies still aspire to a better tomorrow?"
None of those things have changed since last night, said Vargo, adding that politicians tend not to strictly follow through on their campaign rhetoric.
Remember, Trump is pro-growth
At the end of the day, a key part of Trump's platform is massive deficit spending on infrastructure and a lot of pro-growth policies, said certified financial planner Michael Kitces, a partner at Pinnacle Advisory Group and author of the Nerd's Eye View blog. "As we get through the knee-jerk reaction from last night, that's why we're already seeing markets normalize."
That initial market selloff was more likely about Trump's potential impact on geopolitical risk than on fundamental growth risks, said Kitces. With the dust seeming to settle as of midday Wednesday, he said, "it seems at least initially the markets are deciding those two roughly cancel each other out."
Mitigate risk, and don’t sell low
Chris Chen, a certified financial planner based in Waltham, Mass., tells clients "the economy and markets will survive Trump" and urges them to focus on the long term—and not to sell low.
In the short term, Chen might consider risk-mitigation strategies such as focusing on dividend- and interest-paying investments "to buffer against the likelihood that a mix of Trump policies plus a market that is arguably fully priced may result in a correction."