ALBANY, N.Y. (NEWS10) — The stock market plunged overnight Tuesday with the news of Donald Trump’s win, but financial experts say it’s best to try to relax and not react too quickly.
Economist and Asset Management Executive Hugh Johnson has been receiving calls at his 80 State Street office all Wednesday morning.
“One thing you don’t like in this business is surprise, and if there has ever been a surprise, Brexit of course was a surprise, but this was even a bigger surprise,” said Johnson.
He’s talking about Donald Trump becoming the President elect sending the stock market tumbling overnight on Tuesday.
“In the minds of many investors, it introduced a lack of continuity, and introduced a lot of uncertainty,” Johnson said.
Johnson adds though that this reaction is exactly as one might have predicted, not because investors necessarily do not support Trump, but because they are not really clear on his policies yet.
“Trump represents a change and when you talk about change you talk about introducing uncertainty,” Johnson added.
According to Johnson like any change, many investors may have just had a knee-jerk reaction and it may not take as long as they might think for things to start to clear up.
“It’s probably doing that right now, and it is doing it because people are getting over the worries and one reason they are getting over the worries is, because some of these are waking up to the fact that ‘Look, this a new president,'” Johnson said.
It takes time for legislation to have impact on the economy, which Johnson adds could actually be a positive one so investors should try to relax.
“It’s hard not to make some changes in your portfolio because you think the world is coming to an end, it’s not. It rarely is,” Johnson said.