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EP 124

Mid-Year Election Update with Michael Scott, CFA

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Inside This Episode

Join John and Michael Scott, CFA as they discuss the upcoming election and its potential impact on the economy and markets. This episode is packed with data designed to help ease the minds of investors. Learn about historical market performance during election years, how emotional biases can impact your investment decisions, and why a strategic asset allocation is crucial for long-term success.

Access the infographics & data charts from this podcast: https://1drv.ms/w/c/acca9280ad6e9480/EZpiZw7ySCFEpS4gkfnH_HQBYniAIxK_Ps4jRPEenxhkaA?e=yzMtlY

Three Biggest Insights

  • Market Volatility During Election Years
  • The Impact of Political Bias on Investment Decisions
  • Historical Market Performance in Election Years

Key Takeaways

  • Stay the Course with Your Portfolio: You shouldn’t make drastic changes to your portfolio based on election outcomes. Your strategic asset allocation is designed to withstand market ups and downs, including those caused by elections.
  • Emotional Investing Can Be Detrimental: Historical data shows that the market can perform well regardless of which party is in power, so focus on your long-term financial goals instead.
  • Historical Market Trends: Despite common beliefs, election years are not always volatile or negative for the markets. In fact, the S&P 500 has shown positive returns in most election years, suggesting that staying invested is usually the best strategy.
  • Importance of Avoiding Market Timing: Trying to time the market based on election outcomes can lead to missing out on significant gains. Historically, the best market days often cluster around the worst days, making it crucial to stay invested consistently to achieve long-term growth.