Change is in the air, with the election upon us. As this year’s US presidential election draws to its end, some investors question whether they should change their investment strategy based on the election’s outcome. It’s natural to wonder how a new administration, whether Democratic or Republican, might affect your investment.
Despite this seemingly significant concern, the good news is that nearly a century of financial data offers a comforting answer. It shows that stocks have trended upward, regardless of the party in power. That’s right! Whether the administration is blue or red does not matter concerning your investments in the long run.
Investment in stocks is an investment in companies, not political parties. It’s crucial to remember that the President of the United States, while influential, is one of many factors that can impact the markets. Economic indicators such as interest rates, health crises, oil prices, natural disasters, technological advancements, corporate activity, and Congressional actions, among others, also have significant bearings on the market’s performance.
History has proven that stocks reward investors, regardless of who sits in the Oval Office. Therefore, rather than making rash investment decisions based on electoral outcomes, sticking to a long-term investment strategy might be wiser.
So, as we follow the exciting, often unpredictable election season, rest assured that your investments will likely withstand the twists and turns of politics. Remember, your carefully planned investment strategy should reap the rewards, not the changing faces in the White House.
Author
Isaac is a Fee-Only (no products sold) Certified Financial Planner® Practitioner. Isaac founded Stalwart Financial Planning with offices in Fayetteville NC and Durham NC. Isaac provides comprehensive planning and investment management services to individuals from all walks of life. Isaac can be reached by phone at 910-867-8464, or by email (iallen@StalwartPlanning.com). Visit him at Stawart Financial Planning www.StalwartPlanning.com.