On Saturday, November 7, most major news outlets called the 2020 presidential election in favor of Joe Biden. Some people do not believe the election is decided, and President Trump has filed several lawsuits contesting the results.
In either case, I wanted to write you a quick email to say I do not advise making any major changes to your investment strategy at this time. There are several reasons for this:
- Biden’s not inaugurated yet and has no power.
- If he is, like all presidents, regardless of party, some of Biden’s policies may be positive for the markets, and others will be negative.
- Furthermore, there’s a strong possibility that Republicans will maintain control of the Senate. As a result, it will be very difficult for Biden to enact sweeping legislative changes, especially in areas like taxation or corporate regulation. Any changes will likely be modest, and we expect the status quo to be largely maintained in these areas with a Biden presidency.
- Historically, the markets have risen no matter which party controls the White House.
Few things stir up emotions as much as politics. When your preferred candidate wins, it’s easy to feel elation, or at least relief. But when your candidate loses, anger and fear are natural emotions. Wherever you stand, it’s important to remember, the uncertain markets are not controlled by one person or one party. They are driven by dozens – if not hundreds – of different factors that change all the time. That’s why we don’t invest based on predictions, guesswork, or emotions. As you know, investing and emotion do not mix. Instead, we invest based on our long-term strategy. A strategy that is designed to help you work toward your goals regardless of politics.
I always feel it’s important for me to know what’s important to you to help you plan for your 2nd Half. So know that whichever side you stand on, or maybe you don’t have a “side” – whatever the case is, I will continue to help YOU plan the best way to achieve the goals and dreams that are important to YOU!
I’m sure you may have some questions and/or concerns. I’d love to chat with you.
