Ask Matt: Should I sell all of my stock like Donald Trump did?

Q: Should I sell all of my stock, too?

A: Donald Trump dumped all of his stock in June, according to a revelation Tuesday from the transition team. Don’t assume stock moves by President-elect Trump make sense for your portfolio, too.

Seeing Trump sell stock isn’t all that surprising. While he did report in May owning 150 stock and bond investments, Trump has indicated he’s not much of a stock investor. Most of Trump’s wealth is invested in real estate, which he presumably knows most about.

Trump’s situation is very different than yours because you’re not the president-elect. There are rules with what a politician can own to prevent conflicts of interest. It’s a place where you have an edge over politicians: You can be a long-term investor.

The Standard & Poor’s 500 has generated an average long-term annual gain of 9.7%, Index Fund Advisors says. The economy and earnings drive stock prices, not the president. Long-term investors also invest for more than just four years, and who knows will be president then?

If you stay invested you can also earn the market’s roughly 2% dividend yield. Just make sure you’re diversified to protect yourself if any single company runs into trouble with Trump.

Paste BN markets reporter Matt Krantz answers a different reader question twice a week. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.