Your Money & The Election
Updated: Sep 23, 2020
I have the privilege of working with clients at either end of the political spectrum.
Would you like to guess what many Republicans think is going to happen to the market if Biden is elected?
Would you also like to guess what many Democrats think is going to happen to the market if Trump is re-elected?
Over the last 150 years, the market has averaged an 8.2% rate of return under Republican presidents, and an 8.4% return under Democratic presidents.
Source: Vanguard calculations of a 60% equity, 40% fixed income portfolio are based on data from Global Financial Data.
This next one is fascinating.
The gray line in the chart below represents the growth of a $10,000.00 investment in the Dow Jones Industrial Average, a measure of the U.S. stock market, in 1896.
The other two lines at the very bottom represent how that money would have grown if you only kept it invested in the market during either Republican or Democratic presidencies.
Source: Invesco, 2020 US Presidential Election
There are countless criteria to consider before voting for your ideal candidate.
What they will, or will not do, for your investments likely should not be one of them.
Above all else, please cast away the fears you may have about what either outcome means for your money. They're not worthy of your worry.
If you would like to chat about anything personal finance related, please give me a call or book some time on my calendar below. We're always here for you.
Moore Financial Management, Inc. is an Investment Adviser registered with the State of Florida. Our current disclosure brochure, Form ADV Part 2, is available for your review upon request. Past performance is no guarantee of future results.