We're sticking to our investment strategy, and we hope you'll do the same.
Dear Fellow Fool Funds Shareholders,
Donald Trump, a clear underdog going into Tuesday’s vote, will become the next president of the United States.
Global markets swooned Tuesday evening as Trump's changes of winning the presidency began to rise. Domestic markets opened lower today but have rebounded since the opening bell.
So what does this election result mean to investors? Right now, it means there’s a lot of uncertainty. What will Trump’s policies be? How will all of the newly elected officials work together? So many questions…
Your team can’t predict what markets will do in the short term. What your team can do is what it does best: Continue to practice business-focused, long-term investing.
The world is full of surprises. Election upsets happen. Brexit votes happen. The Chicago Cubs finally win the World Series again. As investors, the best thing for all of us to do is to stay focused on the things we can control. We analyze businesses. We evaluate management teams. We assess risks. We work to buy stocks at reasonable to attractive prices, and we assemble those stocks into portfolios.
What can you do? Turn to the facts. The facts suggest that most of the stock market’s gains cluster around just a few days each year. Jumping out of the market (for any reason) decreases your chances of being invested on those days, and participating in those gains. The impact is startling and compounds over time. A study by Index Fund Advisors shows the impact of missing the best days, over the past 20 years:
Your team will have plenty of discussions about how the new political situation in Washington, D.C., could affect the various companies in our funds. But over the long term, we still believe that it’s the quality of the businesses, the strength of their prospects, and the attractiveness of their stock prices that drive investment returns, not the outcome of any single presidential election.
The people have spoken. The election has been decided. Now it’s time to get back to work seeing what long-term investing opportunities make themselves available each and every day.
As always, we thank you, our valued shareholders, for your trust.
(Note: Past performance does not guarantee future results. Results will differ during alternative time periods and do not indicate the performance of any Funds. Direct investment in an index is not possible.)