After the election duel, stay cool and manage emotions

“The ballot is stronger than the bullet,” Abraham Lincoln famously said. Luckily for Donald Trump, that proved true. And in the end, it wasn’t close. Trump will return to the White House as the 47th President of the United States, while Vice President Kamala Harris is consigned to a group of failed presidential candidates that includes the likes of Hillary Clinton, Al Gore, and Michael Dukakis. Such is the brutal, zero-sum game of politics.

As expected, it was a barroom brawl of an election campaign, and emotions ran high. As the dust settled in New York City the following day, attendees at the InvestmentNews 2024 Women Advisors Summit reflected on what the result means for advisors. The message was clear from the stage: Keep a cool head, manage emotions, and meet clients where they are.

On one level, of course, this avoided the elephant in the room at the summit and the subsequent Women to Watch Awards, which is the jarring reality that a man found liable for sexual abuse will once again take the oath of office. But while no one was condoning Trump’s behavior, there was a sense of grounded pragmatism that, despite the divisive rhetoric, their duty was to make sure clients were well-served and educated.

One piece of historical data advisors up and down the country will be sharing right now is the typical post-election bounce in the markets, which thrive on certainty. In the short-term at least, Trump’s resounding win has given investors the confidence to ride the Trump wave. The S&P 500 took flight, banks jumped, small caps benefited, and bitcoin went bananas.

As writers Emile Hallez and Bruce Kelly expertly explore in the following pages, regulatory overhaul is also likely, while the prospect of extended tax cuts is a boon for potential M&A deals. From a business perspective, the vibes are good right now. But, as everyone remembers, Trump is an emotional president, and the mood can change on a social media post. Warren Buffett, for one, is not getting carried away and is sitting on hordes of cash. A warning to overzealous bulls, perhaps.

The elite women advisors at our event this month knew all this only too well. And they know the emotional impact a Trump presidency can have on clients. Oscarlyn Elder, of Truist Wealth and a panelist at the summit, urged perspective. “We remind [clients] that elections matter, but other factors matter so much more,” she said, adding that advisors are “more essential” than ever to explain this.

The likes of Elder, and all the outstanding Excellence Awardees at the Women to Watch Awards, will be able to handle the emotional side of finance like few can. The next four years will be stormy. Buckle up and keep a cool head.