US Election Impact on Investment Portfolios

Are you concerned about the impact that the upcoming presidential election will have on financial markets and investment performance? Perhaps you shouldn’t be as worried as most investors are. While it’s understandable that many are cautious about what uncertain political transfers may result in for US investments, it’s important to not necessarily act based on headlines, but rather understand the purpose that your investments hold. We’ve put together a list below to share some information that you may find useful.

Elections matter, but not so much to your investments by Vanguard 
Research information by Vanguard shows the numerical impact that election cycles may or may not have on investments around new office election periods. Below is a research report compiled by Vanguard that shows volatility comparisons for election years. You can download the PDF at the link above. 

What history tells us about US Presidential elections and the market by Dimensional Fund Advisors Further research put together by Austin-based investment management firm, Dimensional Fund Advisors, also carries the notion that market performance may not necessarily be dramatically shifted by changes in the Oval Office.

Market Returns During Election Years
Above is a detailed PowerPoint presentation with numerical and graphical representations that show historical results and comparisons for past election years. 

Now that the 2020 US Presidential Election is less than 30 days away, it’s important to acknowledge concerns about the impact that an uncertain political cycle may have on markets and your investment portfolio. To have an individual conversation about the status and objective of your holdings during this time, please contact our office and we will work with you to address these concerns.

Simonet Financial Group, LLC
[email protected]
Phone: (512) 296-8962

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