Election Got You Worried & Pondering Portfolio Changes?

• 2 min read

Hand dropping ballot envelope in a box with American flags in the background.
As the election approaches, many are considering changing their investment portfolios. Here are several points to consider.

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Hand dropping ballot envelope in a box with American flags in the background.

QUESTION:

I think the November election will change America’s leadership and direction. What should I do to prepare?

ANSWER:

As the 2016 election showed, predicting outcomes and impacts is a gamble. Even if you get the outcome right, forecasting specific policies and their economic impact is even trickier. In short, don’t panic over polls and pundits.

However, it’s not too early to consider what might affect your portfolio this election season. Keep the following points in mind:

  • Markets dislike uncertainty and therefore don’t like elections. It’s not uncommon to see markets fall prior to an election just because of its unpredictability.
  • Similarly, markets usually rise after an election because most of the uncertainty has dissipated.
  • Despite campaign rhetoric, elections do not typically create a sea of change in the markets or economy. Good policies are important, but remember that the American economy mostly runs on free enterprise and not on the government.
  • Don’t underestimate American enterprise. Businesses are really good at adapting to changing conditions.
  • Your wealth management and investment strategy should be based on long-term goals and economic trends, not which party controls the government.

That said, shorter-term tactical moves might be prudent if significant policy changes are in the wind. But in the meantime, stay grounded to real long-term economic trends rather than getting caught up in the campaign rhetoric.

Please contact us if you would like to discuss your portfolio and the options going forward.

This information is for general information use only. It is not tailored to any specific situation, is not intended to be investment, tax, financial, legal, or other advice and should not be relied on as such. AMG’s opinions are subject to change without notice, and this report may not be updated to reflect changes in opinion. Forecasts, estimates, and certain other information contained herein are based on proprietary research and should not be considered investment advice or a recommendation to buy, sell or hold any particular security, strategy, or investment product.

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