Over the past 6-weeks or so, the number one question I’ve received from clients is, “What do you think will happen to the stock market if [you-know-who] gets back in?” My initial response has most often been to say a version of, “I don’t want to live in a world where that malignant narcissist is voted back into the White House...” However, as the question relates to client portfolios, I have some pragmatic and less emotional advice: STAY THE COURSE.
In their March 6th publication here: Key things to know about U.S. elections, our US Portfolio Advisory Group very neatly outlined four key principles to keep in mind, regarding US election cycles. It is my hope this can help quell any potential knee-jerk reactions when it comes to making decisions based solely on media rhetoric and conjecture. They are:
- The market has performed well under various combinations of party control
- Wall Street’s priorities often differ from Main Street’s
- The Fed, economy, innovation, and profits tend to matter more than Washington policies
- Historical election data is useful to consider, but there are caveats
I would strongly encourage you to take a few moments to read the article, because I think there’s a tremendous amount of rationale and wisdom embedded within it.
Under, Elizabeth Hunter - Commentary (rbcwealthmanagement.com) you’ll find the RBC DS Global Insight Monthly, which also contains a wealth of information. Please bookmark this for easy access in the future.
I see a lot of value in maintaining a “glass-half-full” approach. That being said, I encourage anyone who is feeling at all uncomfortable about this upcoming season and what that might mean for your portfolio, to get in touch with me.
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