With risk tolerance being tested for the first time in a decade, investors are reconsidering their risk appetites. Advisors have a plentiful choice of tools to assess investor risk tolerance. But the same isn’t true on the institutional side.
If you invested in stocks whenever there was a Democratic president and bonds when there was a Republican one, since 1949, your return would be 20 times greater than the opposite strategy.
President-elect Trump appears to have won largely on the votes of the forgotten segments of our country who believe that they have been underserved by establishment politicians and gridlock. Despite the recovery from the financial crisis and a 15% increase in real GDP since the 2009 trough, large segments of the population feel that they have been left behind economically.