OAKWOOD, Ohio (WDTN) – After the news of President Donald Trump’s COVID-19 diagnosis, the stock market opened down, with the DOW dropping more than 500-points.
Stocks were able to recover some by the afternoon.
Jessup Wealth Management in Oakwood CEO Matthew Jessup said markets are normally volatile around elections because the market performs better when it doesn’t receive surprises.
“I would take it as a grain of salt in the whole grand scheme of things related to the stock market,” Jessup said. “Generally speaking, the market is going to look ahead six to nine months and try to gauge where the economy is going to be.”
Experts start looking at the stock market three months out from Election Day. Markets can often provide insight into who might win the election.
“It’s indicating to us in the news flow that Trump has a slight advantage despite what the polls are saying, and the negative reaction that you’re seeing in the market today kind of proves that point,” Jessup said.
He said that’s because the market dropped after negative news over President Trump’s positive covid-19 case.
Jessup said if you have investments, the best thing to do is not panic and follow your investment plan.
“If you are watching the day-to-day noise when it comes to the market, you tend to make emotional-based decisions,” Jessup said. “Two gutting emotions are fear and greed. If you have a plan in place, you can look past the noise and stick to your investment game plan.”
He said because it hard to predict what the market will do right now, focus on what you control like savings rates and withdrawals from investments.
Jessup says some good news for investors looking past the election — low interest rates from the federal reserve are expected to push more money back into the stock market.
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