Post Election Reflection
Kori Allen, CFP®
November 6, 2024
Campaigns can stir strong emotions and with the polarity of current civic discourse, those emotions may be even more amplified, now, with the results. Many are reflecting on what this new leadership could mean for the country, our communities and our financial lives. Campaign rhetoric fueled each of our imaginations so our early reactions are anticipatory, but not realized. Sitting with these feelings can help clarify what is dear and help identify if or what action is needed.
In terms of our financial lives, though, it is important to remember that, historically, markets have been influenced more by economic fundamentals than by which party is in power.
As this chart shows, the stock market has fluctuated under presidents of both parties and the S&P 500 has trended higher over the long term, no matter who’s sitting in the Oval Office.
Long-Term Trends: The stock market, as represented by the S&P 500, has generally trended higher over the long term, regardless of which party holds the presidency.
Company Growth: The dynamic U.S. economy has consistently produced successful companies, contributing to economic strength under various administrations.
Market Priorities: Factors like earnings growth, economic conditions, and technological advancements can have more influence on market performance than political changes.
Investor Focus: Your investment strategy should align with your goals, time horizon, and risk tolerance—not the outcome of a single election.
While elections do have consequences, it’s important to keep perspective. In the meantime, we’ll be closely monitoring how the new administration's agenda might impact areas like tax policy, regulations, and corporate competitiveness. Market reactions to political shifts can create short-term volatility, but these fluctuations can be temporary.
As always, the key is to stay focused on your financial goals. Sudden moves in response to short-term events might be more detrimental than beneficial. We’re here to help you navigate any uncertainty while pursuing your overall financial strategy.
If you have questions about how current events could impact your investments or want to discuss your financial strategy, please reach out.
“…What’s so funny ‘bout peace, love and understanding?”
Elvis Costello and the Attractions
The views expressed represent the opinions of Pearl Wealth, LLC as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.
Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website. www.adviserinfo.sec.gov.
Past performance is not a guarantee of future results.