It should come as no surprise that the economy is the most crucial issue in the upcoming election.
But here’s something that may surprise you. More than 90% of investors say they plan to change their portfolio in the 12 months following the election.1
Some are preparing to adjust their stock holdings. Others are looking to adjust their bond positions. Some say they expect to boost their cash portion. And others consider doing “something else financially” as a result of the election.1
During each election cycle, it’s common to see surveys that ask investors, “Do you plan to make any changes to your portfolio as a result of the election?” It’s only the confident, bold, and patient investor who answers, “No. I don’t plan any changes.”
Second-guessing your investment strategy is natural. And especially with an election on the horizon. Emotions are running high as investors consider each presidential candidate’s positions and how they may influence the economy.
But this election cycle, challenge yourself to be confident. To be a patient investor who knows that investing involves risks, making decisions based on your goals, time horizon, and risk tolerance. Be the bold investor who knows that sound analysis should drive portfolio decisions, not a knee-jerk reaction to a current event.
At Epic Capital, we have recognized the delicate balance between politics, the economy, and investing in a volatile environment. If you’ve been following our Epic Market Minute Videos, CERTIFIED FINANCIAL PLANNER and Financial Advisor Ed Doughty has been tying those three themes together. Our most recent one was titled “Dry Powder Turns Fear into Opportunity” and touches on the broad-based market sell-off only a week before the election.
For additional insights and resources, be sure to sign up for our Weekly Market Commentary, follow our YouTube channel. We regularly post our Epic Market Minute videos, follow us on LinkedIn, or like us on Facebook. And as always, please don’t hesitate to reach out to a dedicated service professional at Epic Capital.
The Federal Open Market Committee (FOMC) increased the target rate by 75 basis points (bp) to a 3.25% upper bound and delivered a more pessimistic outlook in their published Summary of Economic Projections.
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At one point or another, you may realize capital gains, which is a taxable event. What can you do about them? You can do what some investors do – you could recognize investments with a loss and practice “tax-loss harvesting.”
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