The biggest topic that is brought up in client meetings revolves around the election and how it will affect clients’ portfolios. We do not know what the election outcome will be or what impact the results will have on the markets, our focus is on the bigger picture.
Here are 5 points that investors need to remember during an election season:
1. There will be volatility
We may not know how the election will shake out, but we know there will be volatility. Investors need to be prepared to make decisions to mitigate volatility within their portfolio.
2. Election results do not equate to success or failure
The 10 best years following an election were 1980-1989 when Republican Ronald Reagan was elected. The 10 worst years following an election were 2000-2009 when Republican George W. Bush was elected.
3. The election is bigger than the White House
Yes, there is a Presidential election; however we need to remember that both the Senate and House of Representatives are also undergoing elections that may change the majority of power in Congress.
4. Review your portfolio
It is a great time to look at your investment risk to be sure you are willing to withstand volatility. Some sectors of the stock market are currently at all-time highs, higher than pre-COVID numbers. Now is a good time to ask yourself if you are comfortable with volatility similar to what we experienced in February and March.
5. Remember it is a long term approach
Do not allow yourself to focus on the next 4 months by attempting to “time” this volatile market. Have a long term plan that can weather short term storms.
If you would like to schedule a no-cost meeting to review your portfolios risk, call our office at 320-222-4236 for a no-cost meeting today!