Trump Win Sends Wall Street on Wild Ride – Down 800 to Up Over 300 Points
Donald Trump's win on Tuesday night sent the stock market on a wild 1,100 point ride, starting with FBI Director Comey's Sunday clearing of Hillary Clinton to Trump's dramatic win.
Investment counselor Bob Seidenschwartz with S.G. Long and Company in Missoula said the markets love stability and respond violently to uncertainty. He provides a timeline in the movement of the Dow.
"Just three or four days ago we had a 300 point gain in anticipation that Clinton was going to win," Seidenschwartz said. "Remember, the markets like certainty, especially political certainty. But last night, the futures at one point were down almost 800 points, which would have surpassed the biggest drop we've had in the past year. Why? It was starting to become obvious that Trump really had a chance to win and that uncertainty and fear began to set in. By this morning it was down about 250, and guess what? We opened just slightly lower, but right now, as we speak (about 1:00 p.m.) we're actually up over 300 points."
Seidenschwartz said the lesson learned in the last few days is to have sound advice from a trusted financial counselor.
"I want people to please listen carefully," he said. "The one thing in this kind of environment is not to overreact. Stick to the methodology and discipline that brought you to this point, and if we do see a significant selloff, that's a moment of opportunity to find good buys on stocks. Maintain your dollar-cost averaging and maintain your long-term perspective."
On Wednesday, the Dow closed up 256 points.