As I write this, we are two weeks from election day 2024. I hear this question more often: How will the election impact my investments? The truth is, you likely care more about the outcome of the election than your investments do. As we count down to November 5, election-related conversations will increase, which can feel overwhelming and stressful. This is another great reason to meet with an experienced fiduciary financial planner. If you’d like to talk, just follow this LINK to schedule a time for us to connect.
Here’s Some Perspective
As the following chart shows, while the stock market has experienced fluctuations under the leadership of both parties, the S&P 500 has trended higher over the long term—regardless of who occupies the Oval Office. This upward trend suggests that the market's performance is tied more to the overall strength and resiliency of the U.S. economy than to which party or individual holds the presidency.
- Long-Term Trend: Historical data shows that the stock market has generally trended upward over time, regardless of which party holds the presidency.
- Company Growth: Many successful companies have been founded and thrived under different administrations, contributing to the economy’s long-term strength.
- Market Priorities: Factors like earnings growth, economic trends, and technological innovations tend to drive the market more than political changes.
- Investor Focus: When you invest, you’re aligning with your time horizon, risk tolerance, and specific goals—not betting on specific political outcomes.
Key Takeaway: Elections often bring short-term uncertainty, and it’s reasonable to expect some volatility in the coming months. However, try not to let short-term market swings derail your overall investment strategy. Stay focused on your long-term plan.
How should you adjust in advance of the election? I suggest you start with a visit with an experienced, highly-trained, CERTIFIED FINANCIAL PLANNER™ professional and Behavioral Financial Advisor in West Saint Paul, Minnesota to help better understand your options. I love to meet new people. So, follow this LINK to find a time for us to have a get-acquainted visit.
I am a financial planner who is an advocate for my clients ALL THE TIME – a fiduciary financial planner. I provide guidance based on clients’ best interests, not commissions or sales quotas. I think it’s the best way to serve clients and I am thrilled to work this way all the time.
And yes, I’m still taking on a few great families to be part of my financial planning practice in West Saint Paul, Minnesota and, thanks to Zoom, across the country.
Dunncreek Advisors does not provide legal or tax advice, nor is this article intended to do so.
Sources:
- Chart https://go.ycharts.com/hubfs/How_Do_Presidential_Elections_Impact_the_Market/Election_Guide.pdf
Stocks are measured by the Standard & Poor's 500 Composite Index, an unmanaged index considered representative of the overall U.S. stock market. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index. Stock price returns and principal values will fluctuate as market conditions change. Shares, when sold, may be worth more or less than their original cost.