We are standing at the threshold of what is being called the most important election of our lifetime. What does that mean for you and for me? One thing’s for sure, this presidential election looks like it will be one of the highest contested races along with being very divisive.
What does this mean for our immediate economy and, for you as an investor, the immediate future?
What happens to the market if Biden wins; what happens if Trump stays in the White House? This back and forth makes it hard for investors to think clearly but that is what is needed. I understand.
It seems we are on some kind of theater stage, and we have no idea exactly how the play will continue or end even after the drama is over. And more than likely the drama, to some extent, will continue. So, what is the effect of this on the stock market?
I answered this question last week but let me re-emphasize that what is needed now is rational, unemotional decisions. This is why my outcry is: Emotion is out, and logic is in! Don’t look at the long range view of the market through political lenses!
There’s a temptation to do this, especially when you run up against a strong partisan trend, which is at work in our country at the moment. We tend to make assumptions based on political bias. I challenge my clients not to do this because it is the wrong thing to do.
There were plenty of people who sold their stocks because Barack Obama won in 2008. In doing so, they missed out on one of the greatest stock market bull runs in our history as the S&P surged over 120% in the next eight years.
Those who sold when President Trump was elected experienced the same thing. The S&P gained over 50% these last four years. The truth is the market is much more cyclical than it is moved by politics. It is far more powerful.
Politicians enjoy saying everything depends on them, but over time, our economy is far too powerful to be affected by any political posturing. In the short-term, however, Presidential elections cause market change—just as we witnessed at the end of last week. The market dropped in anticipation of a change.
So, what adjustments or changes should you make to your portfolio based on the outcome of the election?
A part of my planning methodology and a proprietary approach is to remove the emotion around investing (AKA external circumstances!). This is exactly why I created the 3-Year Bucket approach to financial and investment planning.
Emotion is out and logic is in! I’m planning a quick 15min Zoom + Q&A today to connect and put your mind at ease.
Join me at 4:15pm on Zoom right after the market close to further discuss the 3-Year bucket and deliver that sleep-at-night value:
Monday, November 2, 2020 at 4:15PM – 4:45PM Eastern Time
Topic: Pre-Election 3-Year Bucket Discussion
15 minute discussion followed by Q&A
Join Zoom Meeting
Meeting ID: 856 9397 9254
Dial by your location
+1 646 558 8656 US
Put yourself in the elite tranche of people who aren’t going to lose sight of their Perfect Day and whose blood pressure isn’t going to spike in the event of a post-election surprise market movement.