LUBBOCK, Texas (KCBD) - Stocks hit record highs Wednesday after the inauguration of President Joe Biden.
The new administration has many investors questioning what will happen with the market in the coming months.
“Over an entire presidency, or over an entire administration, many people are surprised to learn that the market has actually gone up under every single combination that we’ve had in Washington, regardless of who’s in control,” Tommy Wood, financial advisor with Edward Jones Investment, said.
While it is hard to predict what the market will do over the next few months, Wood said it is always wise to focus on your individual goals. For instance, someone who is planning to retire soon may have a different strategy than a parent who plans to send their child to college in a couple years.
“I think it’s very, very wise for each person to talk to their financial advisor and really sit down to look at their individualized goals, and put together a strategy that’s based around that,” Wood said, “because over the longer term, the markets themselves have been very resilient.”
Although this last year has been difficult for many families, from the market’s perspective, Wood said what matters is the profitability of the companies you invest in.
From a financial perspective, Wood said always keep the end goal in mind. That is more important than anyone’s predictions.
“A good, diversified plan that is designed to wind up owning quality over the long term has historically given people a much better opportunity for success than any other strategy,” he said.
His biggest advice is to focus on high quality investments, and ensure they are personalized for you. Then, stick to them long term.