Market takes a dive on news of Trump victory
The stock market took a massive dive just before and moments after Donald Trump was declared the President-Elect around 0230 today.
The Sydney Morning Herald reported that there was a moment of panic felt around the world as countries like Australia, Mexico, and Japan had market slumps in response to voting results showing Trump’s gradual climb.
Fortune reported that the Dow Jones Industrial Average dropped almost 650 points during after hour trading; S&P 500 was down 4 percent, the Nikkei was down 5 percent, and the Mexican peso had plummeted almost 12 percent. The drop in the Mexican peso was the largest the currency has seen in over 20 years.
The Economist reports that “vague and erratic” statements from Trump in regards to trade and foreign policy have the rest of the world worried.
This might motivate some service members and veterans to pull their funds out of Thrift Savings Plans, 401(k)s, and other investment tools. Before they do that, take note that the dive was temporary and seems to be recovering. According to The Guardian, U.S. yields (interest rates) on U.S. debt is on the rise.
That bounce, according to The Guardian, is due in part to Trump’s acceptance speech.
Alex Edwards of UKForex wrote “[Trump’s] appeasing tone has definitely helped” the market response.
Jeremy Cook of World First writes “It’s because he sounded more presidential.”
That said, Paul Krugman from the New York Times writes “If the question is when markets will recover, a first-pass answer is never.”
So how does this impact your investment and retirement dollars?
Most experts would say don’t panic just yet. Right now, it’s still unclear how exactly Trump’s election will impact the U.S. and global economies in the long run. It would be premature to pull funds out of the TSP and other market investments, but should you decide to do that, consult a financial advisor.