Originally published by Knoxville News Sentinel
While some of us may be tired of hearing about the upcoming election, voting for our national president is certainly important. Yet, many of us wonder what the election impact will be on investments and the U.S. stock market.
Based on a study performed by Hartford Funds in September 2016, 43 percent of Americans think a Republican president will be better for investments and 32 percent feel the party affiliation won’t matter. Additionally, 86 percent of respondents feel presidents have at least some influence on stock market performance.
Surprising to some may be that since 1961, the S&P 500 has performed better on average under Democratic presidents.
In today’s day and age, something as small as the iPhone can affect the global economy in ways greater than the White House. It might seem hard to believe, but smartphone technology has created and supports 1.9 million jobs. A technological crisis could easily be shattering on so many levels and that is not really making the news these days.
There are people saying this election is different. I tend to think they say that every election cycle, but there is a lot of extra emotion tied up in this particular go around. Emotion does not typically help us make good decisions. Continuing to focus on long-term, balanced investing that has your personal goals at the center is certainly the approach we at The Trust Company would recommend.
There are a lot of articles from high profile news organizations with experts touting various opinions. They often contradict each other drastically in their opinions and in supposed statements of fact. Reading too much of this material can end up feeding one’s insecurity and emotion. Focus on communication with your financial advisor about being positioned against market volatility and your long-term goals.
We have to remember that ultimately, asset class performance varies year over year no matter if there is an election. Being prepared for that both mentally and financially is essential.
While we are all interested to see how this election plays out, no matter who wins, Coca-Cola drinkers will still drink Coke, and Pepsi drinkers will still drink Pepsi.
Since I am an Atlanta girl, you know I am a Coke person.
Sharon Miller Pryse, chairman and founder of The Trust Company, may be reached at firstname.lastname@example.org.