Dale Jackson

Personal Finance Columnist, Payback Time

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As the U.S. presidential race between Hillary Clinton and Donald Trump tightens, global stock markets have been trending down. Canadians don’t have a say in who wins, but for those with their retirement savings in the markets, the election south of the border is deeply personal.

Investors around the globe are on pins and needles waiting to see how the Nov. 8 election will play out. Markets usually sort out policy differences efficiently but Nigel Green, the founder and CEO of U.K.-based money manager deVere Group says an added element is putting risk in overdrive: uncertainty.

He doesn’t pick a side on policy but, in a recent note to clients, he does attribute most of the uncertainty to billionaire reality show host and Republican presidential candidate Donald Trump. “The markets are reacting to the uncertainty that Trump represents," Green wrote.

Here is Green’s advice for average investors:

• Avoid knee-jerk reactions: Markets tend to over-react in the short-term. If you are investing for your retirement, you are in it for the long-term. Remember; the name of the game is to buy low and sell high.          
• Review your strategy: It’s times like these when good advisors earn those commissions and fees. A good advisor ensures your portfolio is diversified enough to cushion any blow. Since the outcome is uncertain, some sectors or geographic regions could benefit while others could be hurt.
• Expect long-term change no matter who wins: Green says Trump (unpredictability aside) could preside over looser fiscal policy, including increasing the U.S. defense budget and cutting taxes.  This would constitute a demand uptick for the U.S. economy. He says both candidates have hinted at protectionist policies, which could hurt the global economy.
• Look for short-term opportunity: To put next week’s U.S. election in perspective look back at last summer’s surprise Brexit vote. When the side that wanted to leave the European Union won, the S&P 500 fell more than five per cent in two days. By August, it regained the ground that was lost and gained another 3.5 per cent. 

Dale Jackson is BNN's Personal Investor. Follow him on Twitter @DaleJacksonPI