As the U.S. presidential election draws near, expect to see more and more headlines that propose, “What will happen next if this person is elected?” or, “What policy changes to prepare for in the next four years?”
In reality, however, it isn’t easy to anticipate what may happen with the financial markets after the November elections. An ambitious investor would have to forecast the election results, evaluate which policies may become law, estimate a potential economic impact, and assess how the financial markets might react. That’s a tall order. Especially when you have presidential tweets that move markets.
Remember, in addition to the presidency, a total of 35 Senate seats and 435 Congressional seats will be on the ballot. The makeup of the country’s executive and legislative branches may look much different—or very similar—in 2021.2,3
As we begin the fourth quarter, we look ahead for pockets of opportunity as well as look at the trends we typically see around this time of the year. A financial professional’s role is to help guide and equip clients with the tools they need regardless of who controls the White House or Congress. We’ve been through several elections, and we’re not going to be influenced by a headline that speculates about a policy or projects a new approach.
For now, our team—like you—is looking forward to how the elections will unfold. If you have specific questions about a policy change discussed by one of the candidates, speak to your financial professional. They will welcome the chance to discuss what you are hearing, and may be able to provide some insights and guidance.
Few terms in personal finance are as important, or used as frequently, as “risk.” Nevertheless, few terms are as imprecisely defined. Generally, when financial advisors or the media talk about investment risk, their focus is on the historical price volatility of the asset or investment under discussion.
As Americans get their grills and beach chairs ready for the July 4th holiday, the stock market and the weather across much of the country have both been on heaters. Stocks and bonds continue to effectively navigate a complex policy landscape shaped by evolving trade dynamics, geopolitical tensions, and fiscal stimulus. The market’s resilience in … Continue reading “Market Update – America Gets Record High Stock Prices for Its Birthday”
Birthdays may seem less important as you grow older. They may not offer the impact of watershed moments such as getting a driver’s license at 16 and voting at 18. But beginning at age 50, there are several key birthdays that can affect your tax situation, health-care eligibility, and retirement benefits.
During times like these when geopolitical headlines can be unsettling for investors, we at LPL Research like to remind ourselves of one of our key investing principles. Markets have always faced challenges —ranging from geopolitical conflicts and economic downturns to natural disasters, political upheaval and health crises. These events often trigger short-term volatility and shake … Continue reading “Why Long Term Investing Beats Selling in Volatile Times”
Are you concerned about the inheritance taxes your heirs may have to pay? Then you may want to consider creating charitable lead trusts.
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