How to cope with Election Angst

Presidential elections have a way of creating angst and anxiety. This happens every four years and we always have many conversations with clients of all political persuasions about what, if anything, they should change in their portfolios due to the upcoming election.

Our answer again this year is not to make any changes solely due to the election. As you can see from the graphic below, markets have increased in value over the years through both Democratic and Republican administrations. Which party wins has not historically told us anything about which way the markets will go.

We have written extensively about this in the past. If you are concerned about the upcoming election, we encourage you to review our past blogs and newsletter on the subject. They are just as pertinent today as they were when we wrote them in 2020 and 2016. We’ve provided you a link to the most recent post, Past Reflections on Elections.

If you do not have the time or interest to read over this past information, all you need to know is that we do not recommend making any investment portfolio changes solely due to the upcoming election.  

Please contact us if you would like to discuss this further.

Sources

Dimensional Advisors. Dimension Quick Take: The Market and US Presidential Elections. “Hypothetical growth of $1 invested in the S&P 500 Index.

About the Author

Jim Freeman, CFP® founded Financial Alternatives in 1991 and serves as a Lead Advisor and Partner. He specializes in wealth management, investment management, and comprehensive financial planning for successful individuals and families. Outside the office, he enjoys cycling, running, traveling, and spending time with family and friends. Learn more about our Wealth Management Services or contact our team to discuss your financial goals and long-term planning needs.