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Investment News of the Day
#1
Play safe and take some profit after palm oil firm MP Evans rejects £360m bid, thisismoney.co.uk Wrote:Palm oil producer MP Evans was on the receiving end of a surprise £360million offer last week from Kuala Lumpur Kepong, one of the world’s largest plantation groups.

The bid values each MP Evans share at 642¼p, a 51 per cent premium to the 426¼p closing price the day before the offer was made.

The price might look generous, but it was immediately rejected by the MP Evans board and within a couple of days, shareholders owning more than half the stock also said they would turn down the offer.
Offer: Palm oil producer MP Evans was on the receiving end of a surprise £360million offer last week from Kuala Lumpur Kepong, one of the world’s largest plantation groups

Midas tipped MP Evans in September 2011, when the price was 445p and prospects looked bright.

The stock moved ahead initially but fell back in 2014 and 2015, as markets became jittery and palm oil prices slipped.

This year, MP Evans shares began to recover. The palm oil price has risen and the company sold off its stake in an Australian cattle business to concentrate on palm production.

Today, the stock is at 618p – up 39 per cent from our tip – and the company believes it has a rosy future. It has 31,000 hectares of palm plantations in Indonesia, operates to the highest ethical standards and plans to expand its estate.

The group has also moved from purely harvesting palm fruit to making crude palm oil. Production was 100,000 tons from two mills last year and the group has just opened a third mill, so tonnage should rise from 2017.

MP Evans suffers in part because there are only a handful of palm oil companies listed in London and the market does not devote much time or effort to the sector.

By contrast, Asian-listed companies are valued much more highly, which makes it that much easier for Malaysia-listed KLK to swoop on its smaller rival.

However, KLK’s bid is conditional on receiving acceptances from investors with at least half the shares and it looks as if that will not happen.

This leaves three options for MP Evans. KLK could raise its offer to a level that large investors would accept – thought to be at least 780p. A rival suitor could ride in with an alternative bid. Or KLK could walk away and leave MP Evans to its own devices.

Midas verdict: There is always a chance that KLK or another company will come forward with a higher price than 642¼p. However, that is by no means certain and if MP Evans is left suitorless, the shares will almost certainly drift back.

Cautious investors should sell at least 75 per cent of their shares now so they have banked a profit, even if a higher bid materialises.

The more adventurous may choose to hang on to their stock in the hope of further takeover action. Long-term investors may also choose to back MP Evans, as the business is hoping to forge a successful independent future.
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#2
Academic services to become the new Harry Potter for Bloomsbury Publishing, thisismoney.co.uk Wrote:It is easy to look at Bloomsbury Publishing as a one trick pony – Harry Potter.

Because, of course, it gave life to the novels of JK Rowling and has done pretty well on the back of it.

A big budget spin-off from the franchise, Fantastic Beasts and Where to Find Them, starring Eddie Redmayne, hits cinema screens early next month, providing a further reminder.

And in the run up to Christmas, Bloomsbury plans the launch of the illustrated edition of Harry Potter and the Chamber of Secrets.

The latest results, which were out last week, are a reminder that there is more to this company than the boy wizard, or a single author for that matter.

Under chief executive Nigel Newton there has been a concerted effort to diversify the revenue stream.

And there has been a decisive move into higher-margin professional and academic publishing, where the focus is digital.

The numbers themselves revealed the company performing solidly during the transition.

Revenues grew by just under a fifth to £62.7million in the first half of the financial year, while adjusted profits were £1.5million.

Publishing is a back-ended loaded business with most of the earnings pouring in during the run-up to Christmas. Analysts predict full-year profits will be in the order of £12million.

The headline figures, though, don’t tell the full story. A growth initiative called Bloomsbury 2020 appears to be gaining traction. It is digital in focus and as mentioned earlier aimed at the academic and professional publishing market.

These new, ‘non-consumer’ services are more profitable than the traditional business with operating margins of 25-40 per cent versus 8-18 per cent for print products.

Because of this, professional publishing businesses of this kind are highly prized by investors.

The interim results statement showed the split between consumer and non-consumer stands at 59-41 per cent. But as Bloomsbury 2020 continues to take shape, so the balance will even-up.

‘The academic side is catching up and we are aiming for the split to be 50-50,’ chief executive Newton said.

The City broker Numis reckons Bloomsbury 2020 will increase both ‘quality and quantity of earnings’ after an initial investment period.

Interesting from an investing standpoint are a couple of factors.

The results themselves revealed that Bloomsbury could be one of a handful of Brexit winners as it has strong dollar earnings.

In fact, Numis reckons the foreign exchange rate lift was in the order of 5 per cent in the wake of the UK’s vote to leave the EU in June. The company is also a defensive stock that tends to be relatively robust in times of economic turmoil.

One leading media analyst said that among the stocks he followed, it was the second best performer during the last downturn.

‘Books are so cheap at an average price of £5,’ according to the Bloomsbury CEO, who suspects reading is one of the few discretionary activities that isn’t affected when household spending is cut.

Mr Newton said: ‘History suggests we would weather an economic downturn well.’

Finally, for income hunters, Bloomsbury is a very solid play with a dividend yield of around 4.5 per cent and a decent record of maintaining and growing the pay-out.

Steve Liechti, of broker Investec, hailed the ‘sales momentum’ witnessed in the last results as he said initiatives such as Bloomsbury 2020 would provide a longer-term boost to the business.

Mr Newton also noted: ‘We are making the investment because there is terrific upside potential for shareholders to have a part in best-seller publishing when things take off and on the other hand the higher margin, steadier income of non-consumer.’

In other words it is not just about Harry Potter.
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#3
Thanks for the post......
And also thanks for the tips.... These are very usefull stuff to us.....
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#4
Lightbulb moment helps newly-listed Luceco shine, thisismoney.co.uk Wrote:The stock market has not been particularly welcoming to newcomers lately. Some companies have had to pull planned flotations because they could not arouse sufficient interest from large investors.

Some have had to cut their prices dramatically – and several have seen their shares fall in their first few weeks on the market.

Luceco is different. The company joined the stock market on October 20 at 130p – bang in the middle of its proposed flotation range – and today the shares are 147¾p.

The group’s debut has been impressive, but there should be plenty more mileage in the stock. Chief executive John Hornby has ambitious growth plans and the business is well positioned to achieve them.

Luceco designs, makes and sells about 4,000 types of electrical products, ranging from extension leads to plug sockets to light switches.

Customers include mainstream retailers Tesco and Argos, online giant Amazon, DIY specialist Kingfisher – which owns B&Q and Screwfix among other brands – and national builders’ merchants.

The company has a strong presence in the commercial market too, selling to factories, hospitals, schools and warehouses.

Operating under four main brands – Masterplug, BG (British General), Ross and Luceco – the group has a 40 per cent share of the UK extension lead and cable market, but it is also one of the top manufacturers of switches, adaptors, sockets and related products.

The electrical products sector is highly competitive, but Luceco has one key point in its favour.

In 2008, Hornby opened a factory in China so that the company could have total control of the design, production and distribution of its kit.

Many peers subcontract manufacturing to overseas firms but Hornby believed that his costs would be lower and the quality higher if he kept the entire process in-house. So it has proved.

The Chinese factory has quadrupled in size over the past eight years, it employs 2,000 people and is scheduled to expand still further as the company grows.

Having its own closely supervised facilities in China allows Luceco to produce goods that are both keenly priced and superior quality.

The group has also developed a reputation for innovation, such as plug sockets with mobile phone USB adaptors built into them – an increasingly popular piece of equipment in homes and offices.

Luceco’s switches, sockets and wiring divisions are all growing at a fair clip, particularly the cable and extension lead arm, where revenues rose 34 per cent to £48million between 2013 and 2015 and delivered sales of £30.7million in the first six months of this year alone.

However, the part of the group with the most potential is its newly created LED lighting subsidiary.

Luceco launched this business just three years ago, since when it has grown exponentially. Sales were £1.5million in 2013. They were £23million last year and £14 million in the first half of 2016, with further strong growth expected this year, next year and beyond.

LED lighting is 15 times more efficient than conventional incandescent light bulbs and is expected to be 30 times more efficient in just a few years’ time.

Even today, if the entire world switched to LED lights, it would reduce global demand for electricity by at least 15 per cent and if everyone switched in the UK alone, four power stations could be removed from the electricity grid.

Initially, the market was constrained because LED lights were far more expensive than conventional bulbs, even though they last longer and consume far less electricity.

Today, the difference in price is much narrower and costs are expected to reduce further over time. Companies and public sector organisations, such as schools and hospitals also receive financial incentives to switch to LEDs. The efficiency gains are so marked that they quickly recoup the cost of their investment.

Luceco has focused its energies on the commercial market because businesses, hospitals and such like tend to keep the lights on for much longer than individual households.

The strategy has worked extremely well so far. Luceco’s LED lighting division now accounts for about 23 per cent of group sales and is expected to make up more than half the company’s revenues in five years’ time.

The company even changed its name from Nexus Industries to reflect its enthusiasm for this new division: Luce is the Italian word for light and eco is short for ecological.

Midas verdict: At 147¾p, Luceco shares have had a good start but the price should continue to rise. Long-standing relationships with customers are expected to drive sales of existing products and help the company expand into newer areas such as LED lighting.

There is also a small but growing international division, which should develop over the next few years. The company expects to pay a decent dividend too. Buy.
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#5
Airlines EasyJet and British Airways take off after High Court ruling over Brexit, thisismoney.co.uk Wrote:Rocked by a potential Brexit block, the stock market slipped to its lowest level in almost seven weeks.

However, the pound rallied on a court ruling that Theresa May might not be able to take the UK out of the European Union without a vote in Parliament.

The FTSE 100 closed down 0.8 per cent, or 54.91 points at 6790.51.

Many of the stocks which were quick to spiral the day of the referendum result rallied yesterday.

Airlines EasyJet (up 3 per cent, or 29.5p, to 997.5p) and IAG (up 2.1 per cent, or 9.4p, to 450.8p) were among the top risers. Property investment companies Land Securities (up 2.4 per cent, or 24p to 1007p) and British Land (up 3.8 per cent, or 22p, to 607p) were in the top flight too.

Commodity firms fell to the bottom of the pile as the oil price slipped another 1pc to $46 a barrel.

Randgold was down 6.3 per cent, or 475p, to 7110p, while Fresnillo lost 4.3 per cent, or 77p, to close at 1703p.

Lancashire Holdings was among the highest climbers for the day as it revealed plans to return £122m to shareholders through a special dividend. Investors are set to get 61p a share.

The speciality insurance provider reported pre-tax profit of £34.9m in the three months to September 30, up from £26.8m in the same period last year, though it warned the effects of Hurricane Matthew, which hit the Caribbean and US in October, were not in this reporting period. Shares soared 6.9 per cent, or 49p, to 758p.

A short update from LED lighting company Dialight sent shares spiralling. The firm said revenue is likely to benefit from a weaker pound and performance is in line with current consensus. Perhaps investors expected more.
Dialight will publish full-year results at the end of February. Shares slipped 4.9 per cent, or 35p, to 675p. Rotala shares slipped as it revealed a change in customer behaviour was expected to hit revenue. The firm operates commercial and subsidised bus routes for businesses and local authorities.

In an update it said passengers in the South West, where it provides university bus services, have shifted to weekly and daily tickets rather than long-term passes. That means the company has to wait for revenue as it dribbles in rather than getting larger amounts up front.

The firm has made three acquisitions during the year – Elite Minibus and Wigan Coachways in the North West, and Heathrow-based OFJ Connections. Rotala said it had been noticeably more successful at winning local bus contracts in the West Midlands and had also seen a pick-up in its private bus networks business.

But it warned the state of the industry is changing and there is still more to come with new Government legislation. Shares were off 2.6 per cent, or 1.5p, at 57p.

Severfield rose on news of a contract worth £72m. The steelwork firm, which is behind The Shard and the Olympic Stadium, has been appointed to work on a development in the City.

The 1.4m sq ft building will primarily be an office block, but will also contain restaurants, bars and shops. Severfield has won five other contracts including two distribution centres to be built in the South East, a commercial office development in the Midlands and a research and development complex in Manchester.

Shares advanced 4.7 per cent, or 2.75p to 61.5p.

Construction company Morgan Sindall climbed as it said the EU referendum had had no noticeable impact and the company is on track to meet expectations for the year.

The group has an order book of £3.2bn, its Fit Out refurbishment division has improved margins, and its property services business is on track to deliver a small profit for the year.

Numis has a ‘buy’ rating on the stock. It said the areas the group focuses on – infrastructure, affordable housing and urban regeneration – are likely to benefit from Government investment. Shares gained 1.5 per cent, or 11p, to close at 726p.
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#6
They offer 30% tax relief and exciting growth companies, so should you invest in a VCT? The Investing Show, thisismoney.co.uk Wrote:Venture capital trusts offer generous income tax relief, tax-free dividends and the chance to strike it rich with early stage companies, yet remain something of a mystery to many investors.
Rare encounters with them may crop up - perhaps on suggestion of a financial adviser promoting the tax benefits - but VCT fans argue that there’s much more to them than tax relief and they can make a profitable and interesting part of an investor’s portfolio.
But this investment in unlisted young companies, hoping to emulate Zoopla, ARM, or Innocent, comes at a price – and is riskier than a standard investment fund.
Innovative mattress company Eve, which has a 100-day money back offer, is one of the early stage companies backed by the Octopus Titan VCT
+1
Innovative mattress company Eve, which has a 100-day money back offer, is one of the early stage companies backed by the Octopus Titan VCT
To find out more about what VCTs do, what they invest in, and, of course, the tax benefits, we invited Stuart Lewis, head of tax, at Octopus Investments to join us on the Investing Show.
We ask him why people would consider a VCT and also to explain the risks and why investing fees are high.
Also on this fortnight’s show, Richard Hunter, of Wilson King Investment Management, takes another look at bank prospects.
Britain's big banks have seen their share prices suffer even as the FTSE 100 has risen after Brexit. Investors uncertain about the economic outlook and low interest rates have been shunning banks, so are they an opportunity or to be avoided?
And, later in the first part of the show Nick Batsford, of TipTV, takes a look at what a rise in inflation means for our money.
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#7
MARLBOROUGH EUROPEAN MULTI-CAP: Its all about the stocks, NOT the big picture for top Euro fund boss, thisismoney.co.uk Wrote:Europe may still have its big economic, financial, political and social issues to deal with, but they have not stopped shrewd fund managers making good returns from buying into some of the Continent’s listed companies.
In the past three years, no one has been shrewder than David Walton, who runs the Marlborough European Multi-Cap Fund. Over the period, he has delivered 65 per cent – better than any of the 96 rival funds trying to generate gains from European equities.

Onlookers should not be surprised. Walton has an impressive curriculum vitae, having worked previously for blue-chip investment houses Baillie Gifford and M&G.

Since October 2013, he has been managing money for investment manager and private client stockbroker Hargreave Hale, which runs 20 Marlborough-branded funds.

Under the stewardship of Giles Hargreave, the company has built a strong reputation for fund management and now handles assets worth more than £7billion.

Walton, like most fund managers at Hargreave Hale, is a stock picker first and foremost. The ‘bigger picture’ (Europe’s economy) is of secondary importance and he does not take views on particular economies or stock market sectors as some rivals do. All he is interested in is buying outstanding shares that will help him deliver solid long-term returns.

As the fund’s name suggests, Walton is as happy buying fledgling companies as he is multi-billion pound European conglomerates. It means he can choose from about 3,000 stocks, though currently he is doing the ‘forensics’ on only 200 and investing in 99.

He says: ‘I’m looking for companies that pass three tests. First, they must be well managed by people who preferably have taken their firms through one or two recessions. This reassures me that they have the nous and acumen to steer through the next recession, which is coming.

‘Second, I want to hold companies that can grow above the average. Finally, I want to buy a company when its share price does not reflect the potential of the underlying business.’

The approach needs meticulous research. It also means spending time meeting those running the firms he is thinking of buying into.

‘I and Will Searle, assistant on the fund, get to see 450 companies a year,’ says Walton.

‘It’s about keeping an eye on a broad range of firms – those we might like but whose shares are presently too expensive. All the time, we’re trying to better understand companies and their management in a quest to uncover the most promising businesses in Europe.’

Belgium’s Jensen Group is typical of the firms Walton likes to hold. The industrial laundry equipment maker is 51 per cent owned by the Jensen family and is run by a family member, chief executive Jesper Jensen.

The company is the world leader in developing robotic towel and dressing gown folders. ‘The chief executive has been in his role since 1996,’ says Walton. ‘He has seen it, done it and continues to do it. It’s a successful business which continues to expand.’

Despite the fund’s impressive returns, it remains a relative minnow, with assets of just £59million. Yet Walton is confident that with a three-year record behind him, investment advisers will start taking notice.

‘When I got my hands on it, the fund was valued at £6.5million,’ he says. ‘So we’ve come quite a way. But there’s further to go.’
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#8
Target Healthcare could have the REIT stuff as investor in care homes generates income stream, thisismoney.co.uk Wrote:Brexit, the falling pound and an uncertain outlook for the UK economy have put investors on a more defensive footing.

Savvy operators, both retail and professional, are now looking at stocks that are likely to be resilient if the market cuts up rough.

Generating a long-term income stream that’s inflation-linked and paying a decent quarterly dividend, Target Healthcare REIT, a specialist investor in care homes, may just fit the bill.

Those with long memories will remember the collapse of Southern Cross Healthcare, the last company in this sector quoted on the stock market, and may balk at the description of Target as defensive.

Others will look at care homes and feel a little queasy about making money from the old and vulnerable.

Kenneth MacKenzie takes both queries in his stride. He is the managing partner of Target Advisers, which oversees the real estate investment trust’s portfolio of 40 homes. He is a veteran of the sector.

On Southern Cross, he points out the rental model was never sustainable. The experts spotted this very quickly, but the less sophisticated investors didn’t, he laments.

Meanwhile, the mind-set of running care homes is, in MacKenzie’s view, completely different from being a bog standard landlord of offices or residential developments.
The properties it owns aren’t just assets to be logged on a balance sheet. The business is about people; frail men and women in their final years.

This is front and centre of the company’s thinking, MacKenzie says.

So, comprehensive due diligence is carried out by a specialist healthcare team that assesses facilities and the company’s ethos, and which meets the management before assets are acquired.

Target even has an 80-year-old mystery shopper who helps the team to get down to the granular detail – that includes gauging whether the food is up to standard.

Thereafter, the oversight continues. 'We go back regularly after we have bought,' says MacKenzie.

'In certain respects we act as a sounding board [to tenants]; we see the good and bad practices and the new ideas.

'We describe ourselves as an engaged landlord, which is highly unusual in this sector.'

TARGET HEALTHCATE REIT AT A GLANCE
Ticker: THRL
Value: £276million
Current price: 109.25p
Year high: 114.75p
Low: 105.50p

It is worth pointing out the company tends to invest in modern properties, with good facilities and where residents have proper en-suite wet-rooms.

That latter point might be seen as a basic requirement, and indeed it is if you are incontinent and want to maintain your dignity.

Yet you’d be stunned to know the majority of residential homes just don’t have that level of provision.

'Life is precious and we think elderly people need to be looked after well,' says MacKenzie.

'It is a Judeo-Christian world view we have as a house. We are committed to the care of elderly.

'Our time and money deliver returns in good care for the resident, the carer and the company.'

This thread of basic decency seems to run through the entire business.

So, instead of charging the tenants that run its homes the absolute maximum it could, it ensures they are, in the words of MacKenzie, 'realistically profitable'.

If that sounds a little counter-intuitive, it isn’t. Target wants a long-term sustainable business partnership with these people, not one based on mutual distrust and loathing.

How long-term? Well, the weighted unexpired lease is around 29 years.

Rents are linked to retail price inflation subject to a cap and a collar, which provides for minimum and maximum rent increases.

As Target is a tax-efficient REIT, it pays out all the income it generates in the form of an index-linked dividend.

Currently, that equates to more than a 6 per cent yield for the original investors, around 5.5 per cent at the recent share price – far more than you’d earn plonking your money in the highest interest savings account.
With £21million of debt, Target is conservatively geared if you consider the company’s market capitalisation currently stands at £262million.

Debt will increase as the right opportunities come onto the market, MacKenzie says, while shareholders have been very supportive in the past.

Its last cash call, for an initial £75million, was over-subscribed and eventually brought in £84million.

That was in May and today, after the £12.2million purchase of a care home in Kent, Target’s management has put to work the vast majority of that cash.

MacKenzie is coy as to when Target will next come back to the well.

The shares are currently valued at 10 per cent more than the company’s net asset value and there is an argument that the premium should be even higher.

Funds such as MedicX, PHP and Assura trade at 20-30 per cent above NAV.

The drivers of the business are the changing demographics of the UK, with the number of people of retirement age set to balloon.

In three to four decades there will be two people of working age for every person over 65, compared with four currently.

Not only does that show just how skewed the population ‘pyramid’ is becoming, it reveals another truth – there probably aren’t enough carers out there.

The shortage of carers will put added demand onto homes such as Target’s over and above the overwhelming needs-based demand that already exists, meaning the most effective way of looking after the old and frail is likely to be in such homes.

So, not only is the company a defensive, counter-cyclical play, it is one with huge long-term potential.

However, MacKenzie is keen to focus on the human dimension.

'We operate care homes and they are called care homes for good reason – they are people’s homes,' he says.

'Now, there is a difficult balance to be achieved of having a clinically led, technically correct business and a place where people live well. We want people to live well.'
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#9
Dow futures briefly down 200 as election looks tighter than expected, cnbc.com Wrote:Stock futures erased gains and traded in negative territory as traders watched for the outcome in a presidential race that continued to be extremely tight.

Investors moved into bonds and stock futures fell as traders watched for an outcome from Florida, a state that is still considered too close to call by NBC. Florida's battle has been tense and was separated by only a single percentage point with 91 percent of the vote in, according to NBC.

"It's all about Florida. If she wins that, it's over," said Boris Schlossberg, managing director with BK Asset Management. He said stocks and the U.S. dollar were moving on expectations that Clinton could win the state, but stock futures pared some of their gains.

"Trump needs to win Florida, but he also needs to win Pennsylvania,North Carolina and New Hampshire. Even if he wins Florida he still has a big hurdle in front of him," said Dan Clifton, head of policy research at Strategas. "Florida's close, so the question how does he do in … those other states. It's early."

NBC News projected Republicans retain control of the House of Representatives. Wall Street has favored a win by Clinton but Republican control of congress. It was still too early to tell whether Republicans would win a majority in the Senate.

U.S. futures have been volatile, with Dow futures up as much as 100 points at one point, and later down 80 points. In Asia, the Nikkei was up 1.1 percent. The S&P 500 ended Tuesday's session higher, up 8 at 2,139, as markets speculated that Clinton was in the lead.

The Mexican peso, which has been a proxy for Trump, moved lower against the dollar, erasing earlier gains. Trump has said he would build a wall along Mexico's northern border and break trade deals with the country.

The U.S. dollar gave up gains against the yen and Swiss franc.

Dominic Schnider, head of Asia Pacific Currency and Commodities at UBS Wealth Management in Hong Kong, said the markets were in a wait and see mode.

"I think a lot of people here are looking into gold. That's one thing people have been looking into with the polls shifting toward Hillary," said Schnider. Gold futures were lower in the New York session but firmed slightly, rising to $1,276.40 per ounce.

"We have seen activity by Asian clients in Latin American currencies. That's very unusual," he said, noting there's been a lot of put selling in Mexican peso. "They probably think the bias is toward Clinton."
There's been some buying in the yen, with dollar yen at 104.84.
"The general mode is just wait," Schnider said. "For the time being everything's on hold."
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#10
Investing during a Donald Trump presidency — don’t follow your gut, marketwatch.com Wrote:Moments after the election results started pointing to a Trump presidency late Tuesday night, the stock market began its rollercoaster of a response as Dow futures were down over 700 points. But never fear, your long-term investments will be fine.

It’s easier to say “stay calm” or “leave your investments alone,” though, than to do it with your own portfolio, which is filled with money attached to your future hopes and dreams. Investors sometimes have a hard time separating themselves from the concerns surrounding potential losses or watching every move the market makes.

“All investing is emotional,” said Chris White, author of “Working with the Emotional Investor: Financial Psychology for Wealth Managers.” “Money holds a lot of power so it is easy to get wound up in buying and selling securities.”

Historically, volatility after surprise events dies down, said Josh Brown, chief executive office of Ritholtz Wealth Management who is known in the financial services industry as “Downtown Josh Brown.” Some traders initially react emotionally, panicking and selling, and then there’s a rally that gets the investor to almost where they were before the event. Over time, people become accustomed to the new reality, and market volatility proves not to have been worth the panic to begin with, he said.

So whether you’re happy about Trump’s win, disappointed, or you’re in shock, here are a few things to remember as the market rides out the results of Election Day:

Don’t try to understand market ups and downs
“There is no rhyme or reason to why markets go down when you do it through the prism of who is president,” Brown said. There are too many variables, such as who controls the House or Senate and geopolitical events. The market is also unpredictable — between an hour or two after the tightened race gave way to Trump’s win, futures went down, but by the time the stock market opened the next morning, they were trending upwards. And by the end of the day, the Dow was up 257 points. Investors should avoid analyzing every market move, said Mansi Singhal, co-founder of risk-based robo-adviser qplum. “If you’re a long-term investor, look at long-term price changes and don’t make decisions entirely based on today.”

Know the type of investor you really are
There are three types of investors: the fixer, who is a risk seeker; the protector, who is risk averse; and the survivor, who holds his or her position, White said. “By knowing ourselves, we can be aware of what sort of emotions are bubbling up and to be able to counter those emotions,” he said. In some cases, that may mean a protector becoming objective about his or her investments, and considering buying securities when there is a dip in the market.

Remember you don’t know what tomorrow holds
The market’s response is not indicative of the next four years with a Trump presidency. “In terms of being a long-term investor, we should really be looking out five to 10 years,” White said, adding that any economic policies discussed during the election could have a positive impact on the economy, though it is too soon to tell. Policies on infrastructure spending and tax reform will be beneficial for the market, while the effects of Trump’s immigration and trade plans, which are still unclear, are uncertain, said Roger Aliaga-Diaz, chief economist in investment strategy at Vanguard.

Stay true to the old adage of leaving your portfolio alone
Instead of changing around your portfolio, focus on your career, hobbies and family, avoid being inundated with information overload, and hire a financial adviser, Brown said. “In our experience, investors do more harm than good in shifting portfolios around market and political events like this one,” Diaz said. Rather than revamp your portfolio, perhaps consider rebalancing it to ensure you’re properly diversified, said Mark Goines, vice chairman of hybrid robo-adviser Personal Capital, which saw 40% more account log-ins on Wednesday over the same day a week ago. “Every presidential election has had more short-term than long-term consequences,” he said. “Stay the course.”
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