Focus on Long-Term Planning, Not Headlines: Building Wealth, No Matter Who Wins
Markets are driven by more than politics. Here’s what really matters.
As the 2024 U.S. presidential election approaches, many investors are still feeling anxious about how the outcome might impact the markets. While elections can spark uncertainty, history shows that markets tend to perform well over time—regardless of who occupies the White House. This year is no exception.
“The broader markets are up around 22%-23% YTD for the year. We’re coming off a really strong year and still looking good,” explained Jerrod Ferguson, Vice President at Vance Wealth. “But it’s also an election year. Volatility is likely to present itself, and that’s normal.”
Despite concerns about politics, elections have less impact on markets than most people think.
Markets thrive under both parties. Historically, the S&P 500 has delivered positive returns during administrations led by both Republicans and Democrats. Long-term economic growth doesn’t rely solely on political affiliation.
Investing and politics don’t mix. Emotions run high during election cycles, but the best investment strategies stay the course. “We help clients manage the emotional side of investing to avoid making decisions that could derail their long-term goals,” Jerrod explained.
Neither party is fiscally responsible. No administration has consistently managed government spending within its means. Yet the economy keeps growing, thanks to the resilience of businesses and consumers.
Monetary policy matters more. The Federal Reserve’s policies have a greater influence on market performance than any election. Interest rate changes and monetary tightening tend to drive economic shifts more than legislative decisions.
Innovation drives markets. From artificial intelligence to renewable energy, technological breakthroughs and business growth will continue regardless of political outcomes. Private-sector innovation plays a much larger role in shaping the economy than politics.
Though it’s tempting to get caught up in political rhetoric and convictions, the best way to navigate election-related volatility is by staying true to your comprehensive financial plan.
Rather than reacting to short-term events, Vance Wealth helps clients focus on achieving their long-term financial goals. With the right plan in place, it’s easier to remain strategic, even during turbulent times.
“It’s natural to feel anxious during uncertain times, but our role is to help clients navigate those emotions and stay focused on their long-term financial goals. We’re here to provide clarity, stability, and the confidence to make informed decisions—no matter what headlines dominate the news,” Jerrod explained.
Source: Invesco. “Do Presidential Elections Influence the Stock Market?” Invesco, October 1, 2024.
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*The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
