Broker Check

It's Almost Election Time!

September 02, 2020
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As we make our way into September, we find ourselves planted firmly in the middle of an election season unlike any other in recent history.  Nothing about 2020 has been typical, and this presidential election is no exception. Even under more normal circumstances, election years seem to make investors feel uneasy, and that isn't surprising.  The hype and the excitement are a little bit catching, and this always leads to one question: "What does this mean for my investments?"

In contrast to the election frenzy, the answer is actually rather boring.  Results of presidential elections, historically, have far less impact on the market than the media would lead you to believe.  Remember that phrases like "slow and steady" and "stay the course" aren't catchy.  Making wild predictions about terrible economic implications if one party wins vs. the other is far better for ratings.  In today's world of 24 hour news cycles and news as entertainment, it's important that you remain steadfast and committed to your goals.  Don't let the hype turn to panic. 

This is ESPECIALLY true in a year like 2020.  Frankly, there has been a lot to be concerned about.  But I would like to take a moment to remind you that while we may be living through some unprecedented times, political, social and economic challenges are not new.  Even really big ones. Even a lot of them at the same time.  This does not mean that we ignore what is going on in the world around us or that we never make a shift within your accounts.  We take your concerns seriously, but remember that long term investing is just that: LONG TERM.  We are always here to discuss your concerns and make any changes that you deem appropriate.

Attached is some really good historical information regarding market performance as it correlates to elections and social and economic events (provided by Capital Group). Spoiler alert: elections and election years don't have as big an impact on your investments as you would think. Take a look and feel free to pass this information along to friends or family if you think it would be helpful. 

 

Elections Come and Go

Remember that we are here to help you through these uncertain times and ease your worries. And as always, stay safe, stay healthy, and stay the course. 

Cameron