Pollsters and markets were expecting a Democrat victory, but there was always a good chance of the Republicans retaining the White House or indeed there being a contested election. That last option is now what we face. We will see some volatility in markets between now and the resolution of the election.
It is worth remembering at this time that you are invested at a level of risk that should allow you to ride out squalls in markets. Your investments are diversified so you are not overly exposed to any one market. Your investment managers will always have had an eye on the potential for a contested election and this will have been considered when they positioned your portfolio. You are invested for the medium to long term not the immediate term. Unless your circumstances have changed materially, we believe you should remain invested in line with your plan. In periods of heightened volatility, trying to second guess markets can go badly wrong.
Our recommendation would be to stay calm, stay invested and wait for the US electoral and judicial system to resolve this. Whilst there may be bumps on the way, once there is a victor, order should return to markets.
The information in this blog or any response to comments should not be regarded as financial advice. If you are unsure of any of the terminology used you should seek financial advice. Remember that the value of investments can go down as well as up, and could be worth less than what was paid in. The information is based on our understanding in November 2020.