Tuesday the S&P lost over 1% for the first time in 5 months. The issue at play for markets was the Healthcare vote in the House this week - would President Trump get his first major legislation approved?
If not, what could that mean for all the infrastructure and defense spending President Trump supports that the markets have been hoping for?
If he can’t get healthcare reform passed, would those other initiatives stall out as well?
The vote was supposed to take place yesterday, but with strong opposition from some conservatives still in place, the House leadership moved it back to today.
Let’s get practical.
The markets will react to today’s vote and the media will be screaming about it. Your job is not to be reactive - if we see a drop, don’t jump to sell your stocks as they’re going down. If it’s up, stay level headed - stocks are at record highs right now and a correction will be coming regardless.
Here’s the point - reactive investing usually hurts your long term goals - be careful about any major changes to your portfolio based on how the market responds in the moment.
We’ll send out a special update with more detailed thoughts once the vote happens in the House and we see how markets respond.