When it comes to investment decisions during a presidential election, many people are tempted to adjust their portfolios based on potential policy changes. However, making investment choices solely based on election outcomes can be risky. Markets tend to be volatile in the short-term leading up to an election, driven more by uncertainty than actual economic fundamentals.
Historically, the stock market has performed well under both Democratic and Republican administrations. While certain sectors may be more favorable under one party’s policies (e.g., clean energy under Democrats or fossil fuels under Republicans), long-term market growth is driven by broader economic trends, corporate earnings, and global factors rather than the president alone.
If you’re a long-term investor, your strategy shouldn’t be derailed by short-term changes in the market. Continue to stay invested in the market to achieve growth over the long-term. When you feel tempted to move all assets to cash because of fear of the unknown, remember the following line:
“Time in the market is more important than timing the market”.
Francis LLC has guided thousands of individuals through multiple election cycles. Our financial planners can help you make the best decisions for your financial future, all within a confidential, sales free format. Schedule a session with a Francis financial planner to get started.
If you have any questions, please contact your Francis financial planner or reach out to us via phone at 866.232.6457 or email at info@francisway.com.
