Do Presidents Affect the Market Over the Long Term? You Might Be Surprised By the Answer.
There is a way to bet on the outcome of the election – but the stock market isn’t it. For many investors, the uncertainty of an election season can create either anxiety about remaining invested, or a desire to somehow take advantage of perceived upcoming changes. But the data shows, whether the president is a Democrat or a Republican doesn’t matter that much over a long-term investment horizon.
Remember, elections happen every four years - you're going to see them a lot over the course of your financial journey.
Where does this leave us?
Policy changes are bound to come given the results of both the Presidential election and the Senate races in Georgia. This could potentially create near term headwinds as the market evaluates what could come out of DC over the next four years. The bigger concern, in my opinion, is what's happening with the ongoing pandemic - people getting back to work, vaccine progress and the economy starting to get back on its own two feet. Change brings opportunity! As the world adapts to the new normal, entrepreneurs will continue to experiment with new ways of working as they evolve their businesses.
So...what do we do about it?
It's pretty simple really: have a plan and stay the course. Now is a great time to revisit your goals to ensure they still align with the path you have been walking. The key to long-term success is pairing the financial plan with the investment mix best suited to get you where you want to go. Remember, elections happen every four years - you're going to see them a lot over the course of your financial journey. Successful investing is just as much about controlling emotions as it is about picking the right portfolio.