Blog post #467
Voting for the 2020 elections must be completed by next Tuesday, days from now.
We may know some results late Tuesday evening, but there may be uncertainty on who will be the next President, as well as which party will control the Senate.
The next few weeks may be volatile for US and global stock and financial markets due to the political uncertainty, as well as the increase in Covid cases in the US and overseas.
We recommend that you remain patient, as these various uncertainties play out.
Once political winners are determined, you may have questions as to how campaign “promises” will impact your investments, taxes and estate planning.
One thing we know is that what candidates say during a campaign rarely become the specific laws that are later enacted. Pre-election promises may provide guidance and trends towards an outcome, but real laws and changes take time to pass.
As we have all clearly learned this year with the Covid pandemic, unexpected events that have nothing to do with politics can heavily influence financial markets, legislation and investment decisions.
As we learn what changes the election actually brings, and the trend of future legislative actions becomes clearer, we will provide you with guidance when it is relevant and reliable.
If there are steps that you should take from an investment, tax or estate planning standpoint later this year, we will try to provide you with relevant guidance.
No one can accurately forecast market movements on a consistent basis. We believe this and it is a core principle of our firm.
From an investment standpoint, making major investment portfolio changes due to political outcomes is rarely a strategy for success. We invest for the long term. The stock market is driven by future news that is not already known. Over the long-term, future earnings and expectations of public companies is the key driver of the stock market, not who controls the White House or Congress.
Historical financial data clearly shows that stocks have done well and poorly during both Democratic and Republican presidencies. There are so many other events (think Covid, 9/11, financial crisis of 2008-09) that impact corporate profits and stock market movements than simply what party controls the White House and Congress.
We will be here for you to answer your questions and provide you with our guidance.
Be patient. We know that uncertainty can be very discomforting. But it is a reality that we all need to be prepared for.
Talk to us. We want to listen. We want to assist you, your family members and friends.