Dale Jackson

Personal Finance Columnist, Payback Time

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In a way we can watch events unfold in Washington with detachment. But in another sense the disruption caused by incoming U.S. President Donald Trump has the potential to have an impact on our retirement portfolios – and that’s when it get personal.

If you try to time the market by getting in or out of stocks or sectors that may or may not benefit from the new administration, you are gambling with your savings.

The solution is the same as it has always been: Diversify. Political events most often induce short-term market moves, but it’s the economic fundamentals that drive them for the long term.

Holding the best stocks, in the best sectors, in the best geographic regions will see you through just about any market shock – and often pay dividends as those events play out.

To see if you are properly diversified go back and see how your holdings have performed in times of volatility. A chart of the Chicago Board Options Exchange Volatility Index (VIX) will help pinpoint the dates.

They probably decline when the broader markets fall, but the good ones emerge stronger than ever. When markets rise, the good stocks hold their gains and continue their advance.

Remember, you’re in it for the long-term.