Burns Estate Planning & Wealth Advisors: Should you change your investing strategy in an election year?
MOBILE, Ala. (WALA) - Chris Burns from Burns Estate Planning & Wealth Advisors joined us on Studio10 to discuss investing in an election year.
Below is a list of questions and answers provided by Burns Estate Planning & Wealth Advisors:
We are starting to see some of the first Presidential Debates, and people are ramping up for the upcoming 2024 election year. What advice do you have for investing into an election year? Is that something people should think about with their portfolio?
Good morning! That is a great question. Believe it or not, this is one of the questions we get asked all the time. There is more speculation about what the market is going to do based on political results than almost anything else. In reality, elections can make a difference, but they tend to make less of a difference than people think.
So, what you are saying is, “don’t put all your money on one candidate”?
Historically speaking, if the incumbent wins, then the market does slightly better that year than a new elected president. However, there are many examples where a new president’s first year experiences a great market too. Our biggest fears as advisors are when people emotionally invest or sell everything because they think they know what the market is going to do.
Yes, we hear this all the time “Don’t try to time the market” but it’s really difficult for some when they think if the other candidate get elected, the market could crash or everything goes into disarray
That’s true, but there is always a chance the market could crash, and there is always a chance that it could rally. We encourage people to stick to their long-term strategy, and always re-evaluate what you are willing to lose and risk based on your age and market history, not your gut feeling about an election result.
For more information on Burns Estate Planning & Wealth Advisors visit:
https://burnsestateplanning.com/
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