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.

Jim Freeman, CFP®

Lead Advisor, Partner

Jim oversees both the financial planning and investment management divisions for the firm.

After working in the financial services industry for several years, Jim was inspired to start his own Fee-Only firm in 1991 to eliminate conflicts of interests with his clients. Since that time, he has been named on numerous occasions by Robb Report Worth Magazine as one of the top Wealth Advisors in the United States.

Jim holds a BA in Psychology from Point Loma Nazarene University and also holds the CERTIFIED FINANCIAL PLANNER™ designation. He is a member of the National Association of Personal Financial Advisors (NAPFA) and the Financial Planning Association (FPA).

In his free time he enjoys cycling, running, going to the gym, reading, traveling, and spending time with his wife and kids as well as extended family and friends.