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Facts Over Fear: 2020 Election

October 2020 | Brandon Kennedy | Resources > Blog

As the election quickly approaches, you may look at the divide in our country and feel uneasy about both the state of the Union and the state of the financial markets. While it’s tempting to be swayed by the news and become convinced that “if ______ wins, this will mean the end of financial stability in this country”, we want to remind you- the four most dangerous words when it comes to watching the market are “this time it’s different.”

Act with Intention

At Kennedy Financial Group, acting with intention is one of our core values and something we emphasize to all of our clients. But, we want to caution you – actions driven by fear are so rarely intentional. They’re drastic, rash, and usually not founded on facts or principal. My purpose is simply to suggest that – difficult as it may be – we take our focus off the political divide and, put it where it belongs:

  1. on your goals
  2. on your long term plan for pursuing those goals, and
  3. on your long term focused portfolio as the vehicle for helping us get you there.

These are the guiding principals that can allow you to build wealth and impact the world in a positive way.

Should You Really Be Concerned?

Market instability is a common occurrence and, for good or bad, elections can be a cause. However, the fluctuations after an election are rarely as drastic as people think. For a recent article, U.S. Bank analysts studied market data from the past 90 years and identified patterns that repeated themselves during election cycles. These patterns only look at previous cycles and cannot predict how the current election and subsequent effects on the market will play out. But, what they found may provide some comfort.

  • After an election, stock market returns tend to be only slightly lower for the following year – no matter which party takes office or if control of the White House changes hands.
  • Should a new party come into power, analysts found that the stock market typically gains 5 percent on average.
  • If a president is reelected or one party retains control, those gains tend to be slightly higher at 6.5 percent.

We Hear You.

We pride ourselves on listening intently to our clients, and in 2020, it is only natural that many of our clients are concerned about current events. Our hope is to provide some comfort to you. We want to remind you that we have a deep understanding of your situation and have aligned a long term focused portfolio to help you pursue your specific goals.

Focus On What Matters & What You Can Control.

A significant role that we play as financial advisors is to provide you with perspective and to help decipher and focus only on the things that matter and the things that you can control. If you feel that you need to revisit your goals and plan – please contact our office to schedule a phone call or in person meeting. You have one opportunity to live your best financial life, and we want to do everything in our power to set you up for success – no matter who is in the White House.

To discuss any of the topics covered, and how they might affect your finances, don’t hesitate to schedule a meeting with us!

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.