Good morning Friends,
It's a beautiful Thursday morning, November 5th here in Aliso Viejo, California and as I hammer out this blog the U.S. presidential election is hopefully coming to a close. Who knows, possibly a clear winner may emerge as early as this afternoon but it may be tomorrow, or even later. Whether this whole thing gets drug through the courts or not remains an entirely different story for another day. I will not attempt to comment on all the various potential scenarios that could play out as there's enough of that on any channel or media source of your preference. What I will say is regardless of which candidate eventually prevails, expect to see more and more headlines such as: "What will happen next now that this person is elected?" or, "What policy changes to prepare for in the next four years?"
In reality, however, it isn't easy to anticipate what may happen with the financial markets after the election. For example, just this morning, the prospect of curbs on new regulations and diminished chances of higher taxes under a split congress appear to be driving the markets with the DOW currently up +617.01 points (as of 8:30 am PST). Simply put, an ambitious investor would have to forecast the election results, evaluate which policies may become law, estimate a potential economic impact, and assess how the financial markets might react. That's a tall order.1
Remember, in addition to the presidency, a total of 35 Senate seats and 435 Congressional seats are on the ballot. The makeup of the country's executive and legislative branches may look much different—or very similar—in 2021.2,3
Our role is to help guide and equip you with the tools you need regardless of who controls the White House or Congress. We've been through several elections, and we're not going to be influenced by a headline that speculates about a policy or projects a new approach.
For now, our team—like you—is interested in how the elections will ultimately play out. If you have specific questions about a policy change discussed by one of the candidates, and how it might affect you or your investments, please give us a call. We'd welcome the chance to discuss what you are hearing, and we may be able to provide some insights and guidance.
Sincerely,
Robert Padilla, CFP
1. CNBC.com, September 19, 2020
2. 270towin.com, September 21, 2020
3. Ballotpedia.org, September 21, 2020