I realize that if one does not make their living in the financial markets, nor have the occasion to read the financial news, especially amidst so much election news, one might notice the US stock market drop today and automatically correlate it to our elections. For those of us steeped in the financial markets—me for 34 years (it was child labor)—allow me to say that we are but one cog in an international financial footprint and while our US stock market futures indeed trended higher after the US election results were posted, those same US stock market futures began to slide at exactly 3:15 Brussels time, which was when the European Central Bank President Draghi (our equivalent of Ben Bernanke, and regardless of how one feels about either man, when either of them speak the world listens) warned of euro zone economy’s continued weakness, particularly German’s economy—long thought of as Europe’s best financial hope. Our markets have continued to trade lower all day.
Our wealth as Americans and as women, is NOT to be confused with the balances on our bank or brokerage statements however. We’ve known that for years, albeit any 1-day drop in the US Stock market tends to catch our attention and stoke our fears. I want to ground our confidence as women investors in the basic principles of investing, which is to keep saving/keep investing in a smart and diversified combination of stocks and bonds, whose prices will continue to fluctuate and sometimes gyrate in wide swings. It is our discipline to keep investing, and especially to buy when the prices dip in keeping with what our mothers (and fathers) have always advocated; BUY LOW, sell high. So, if you have some monies that have been parked in a very low interest returning bank account or money market, and that money will not be needed for at least another 5 years or perhaps longer, like for your retirement, or child’s education, let today be the day that you begin to invest into preferably mutual funds of US & International stocks and bonds, preferably with the professional help of a fee-0nly Certified Financial Planner™.