While the U.S. eagerly awaits the outcome of the presidential election and investors focus on the fate of their taxes and 401(k)s, one financial adviser is warning that making moves around this is “a fool’s game.”
“The markets will do whatever it needs to do to prove the largest number of people wrong at any given moment, right?,” Ron Carson, Carson Group CEO, told Yahoo Finance, who emphasized the importance of being comfortable with risk. “Getting your risk budget right is the single most important thing I've seen in my career.”
Carson said investors should use market volatility as an opportunity to assess, instead of trying to time market tops and bottoms. “Really set what your risk budget should be, then you solve for all of the other things you want to accomplish. That’s a non negotiable,” he said. “If you do bad things and destroy wealth, you’re going to end up on the short end of a great retirement some day.”
“No matter who gets in [the White House], there’s going to be stimulus, there’s going to be tax changes.” Carson said, adding that stimulus is going to largely overshadow anything that happens on the tax side. “We’re going to have trillions of dollars that’s going to support the market.”
Jennifer Shanker is a producer for Yahoo Finance.
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