By Bob Barber, CWS®
We have received many calls over the past few weeks concerning the elections. At this point, we are still waiting to see what will happen with the control of the senate. If the senate can maintain republican control, this creates “gridlock” in the government, which is typically what the markets like, and the tax increases the democratic party wants may not happen.
If Biden is validated by all of the states needed to win, he likes China and may do away with all the tariffs Trump put on Chinese goods. This could be positive for international and emerging markets. Biden would also likely open back up free trade with every country, which could be positive for the markets. While points 2 and 3 may not be good for America and American jobs, on a global scale it may be good for other countries, and the markets could react favorably. Hopefully, the above points will help calm your nerves about the markets. I realize it may not help with your concerns or the elections.
On a personal note, I am very disappointed with the overall election results as many of you are, but in light of everything I remind myself that my personal walk with the Lord is the most important thing, not who is elected . We cannot control others but we can control what we focus on.
Philippians 4:8, NIV: “Finally, brothers and sisters, whatever is true, whatever is noble, whatever is right, whatever is pure, whatever is lovely, whatever is admirable–if anything is excellent or praiseworthy–think about such things.”
Please also refer to the charts below for historical reference on how the markets have reacted in the past during republican and democratic presidential terms. It may just help some as for as your investments are concerned.
