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The Importance of Data in an Emotion-Driven Election

October 02, 2020
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As we approach the most emotional election in modern history, we know that people on both sides of the aisle have expressed concern over what will happen in the financial markets if “the other side” is elected.  While we remain politically neutral and data-driven in our investment decisions, we know that many investors may find it increasingly challenging to do so on their own.

We believe that political neutrality is required for effective money management, risk assessment, and prudent asset allocation.  The stock market has never liked “unknowns,” and both presidential and midterm elections are precisely that.  The results of these elections have ramifications across economic, tax, and spending policies that ultimately affect companies, consumers, and investors, so it makes sense that the stock market would have short-term reactions as various outcomes look more or less likely.

During this highly emotional election, we are leaning in to our seasoned experience and methodical process to navigate the next few months.  We guide our clients’ portfolios through ever-changing environments day-in and day-out, and political elections are an ongoing input in a long list of factors that we weigh as we make recommendations.  Every presidential election presents both risks and opportunities, no matter who wins.  We believe in the strength of the market over the long term, and in that of our country, and in the ever-present focus of American companies on being successful.

We will dive into the factors affecting investments in our upcoming online interview with Lauren Goodwin, Economist and Director of Portfolio Strategy, New York Life Investment Management, on October 6.  If you would like to learn more about the context of this year’s election, the dynamics around possible election outcomes, and what this might mean for your investments, please join us for Navigating the 2020 Election: What Investors Need to Know.

Click here to learn more and register.

 

 

Debra Brennan Tagg is a CERTIFIED FINANCIAL PLANNER™ Professional and the creator of the DBT360 Financial Plan, a proprietary program that helps her clients prioritize their goals, leverage their resources, and address their risks. She is the president of BFS Advisory Group and teaches the public and the financial services industry about the importance of values-based financial planning and investor education.