Election 2020 – November 4, 2020

Saying that 2020 has been a difficult year is an understatement. We are grappling with Covid, economic upheaval, racial tensions, wildfires, hurricanes, and a polarized electorate.

Despite this year’s difficulties, major market indexes are well off this year’s low.

• The economic recovery, record low interest rates, and a very aggressive Federal Reserve are the primary reasons.

Investors corner – what’s in store over the next four years

No one has a crystal ball. A forecast you may hear from an analyst is simply an educated guess. He/she may get lucky for the right or the wrong reason.

Here’s what we know about long-term stock market performance.

“Since 1932, the S&P 500 has gained an aggregate of 710% under Democratic presidents and 375% under Republican presidents. But staying invested the entire time would have earned 47,000%,” according to the Schwab Center for Financial Research.

Volatility that was expected after the 2016 election never materialized.

A disputed election could ignite a fresh round of volatility, as investors hate heightened uncertainty. But be careful about making decisions that are driven by the emotion of the moment.

Historically, decisions made that are outside of a well-crafted financial plan are rarely profitable over a longer period.

Created 2020-11-04 15:33:52