Today, the world looks very different than it did yesterday. There was general consensus that global markets had priced in a Clinton victory coupled with gridlock in both houses of Congress. Yesterday, that consensus was rejected. Markets do not respond well to uncertainty and US election results have certainly created an atmosphere of uncertainty globally.
We expect that you may be asking yourself, “what should I do with my account today?” Each investor’s situation is unique. It is important that you consider your investment goals and time horizons. If your intention was to be invested over a long-term period and your goals haven’t changed, history advises you to stay the course. Sound long-term investing relies on an investor’s ability to filter out short-term volatility and the emotional response that follows.
Long-term investors that stray from their investment strategy can get ensnared by market lows rather than enjoying gains built over time. When investors abandon their long-term investment strategy in the hope of being successful in timing market movements, they are often disappointed, locking in losses at a market low and missing the markets’ return to normalcy. Investing and trading are two very different styles of investing. The Domini Funds are built for long-term investors, not short-term traders.
Thank you for your continued confidence in the Domini Funds during this remarkable period of uncertainty. Together, we will keep working toward a more sustainable future for all.