U.S. (KXAN) — Around the world financial markets started to nosedive after it became apparent Tuesday night that Donald Trump would be the next president of the United States.
DOW Futures plummeted 800 points as Trump gained more electoral college votes over Hillary Clinton. Chris Heerlein from Reap Financial joined us in the studio to discuss the economic impact of Trump being elected president.
“We can control how much risk we have, do not make knee jerk decisions. A lot of what we are going to see today is emotions, do not let these emotions drive your investment decisions,” said Heerlein.
Interest rates are going to drive the market on Wednesday. According to Heerlein, interest rates are at historical lows, which is why the market has been buoyant up to this point.
“If anything this may be a buying opportunity at the end of the day, but interest rates are going to be risen very slowly. Remember the Fed promised us four interest rate increases this year and we haven’t seen a single one, that’s why the market is staying buoyant and I think that’s going to continue into next year,” said Heerlein.
Traditionally, whether it’s the red or the blue party, the markets react after a president is elected because there is concern about the fact that their party did not win.
“Once the dust settles, presidents do not drive the market at the end of the day,” said Heerlein. “I truly believe this is a blip and trust me the markets are on an eight year bull run, we are long overdue for a market correction do not get me wrong on that, but what we’re seeing right now is purely emotion.”
The New York stock exchange opens at 8:30 a.m., we will update the story with live coverage of the economic impact of the new president.