Elections, Uncertainty, and the Markets
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.
“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Please also refer to the charts below for historical reference on how the markets have reacted in the past during republican and democratic presidential terms.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.
The views expressed represent the opinion of Christian Financial Advisors®. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Christian Financial Advisors® believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Past performance is not indicative of future results. For any discussion of equity securities: Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. For any discussion of taxes: Christian Financial Advisors® does not provide tax advice and encourages you to seek guidance from a tax professional.