COVID-19 developments, not the Election, will have the bigger impact on the financial markets…
• As the November election approaches, many investors are considering how they should position portfolios ahead of the election. It is always a good principle not to let how you feel about politics overrule how you think about investing. Many Republicans assumed that the stock market would go down under President Obama and many Democrats assumed that the stock market would fall under President Trump. Both lost money on that bet.
Read more… – Dr. David Kelly, Chief Global Strategist, JP Morgan
• Given that we are nearing a presidential election, there are many unknowns regarding public policy for the next several months… That’s why it’s important to take stock of where we are right now. A full recovery from the disaster earlier this year is a long way off, but we believe that recovery started several months ago, and the early read is that the fourth quarter should be solid, as well.
Read more… – Brian Wesbury, Chief Economist, First Trust
• The market’s election-induced moves are likely to be secondary to other catalysts, including COVID-19 developments and fiscal/monetary policy over the next 12 months. Substantial liquidity (as evidenced by cash on the sidelines), ongoing support from the US Federal Reserve, and fiscal stimulus (so long as it doesn’t fade) should remain key tailwinds for the market.
Read more… – Nanette Abuhoff Jacobson and Michael Medeiros, CFA,
As always, we continue to believe that one’s circumstances and risk profile should determine the appropriate mix of investments, and not media headlines. Please contact us if you ever have any questions or concerns about your accounts or any news you hear.
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment, asset class, or investment strategy (including the investments and/or investment strategies recommended by the adviser), will be profitable or equal to past performance levels. Information in this commentary is gleaned from third party sources, and while believed to be reliable, is not independently verified.