Laura Beck
Aug 10, 2024
“The reality: The Federal Reserve Board has more controlling power with the Fed fund rate than the policies of any president,” DeLuca said.
So instead of spending so much time worrying about how election night will affect your portfolio, you can use that time to plan your long-term financial goals.
The article offers guidance on managing your investments during an election year, emphasizing the importance of staying calm and focused. Here are the key strategies shared by financial experts:
Stay the Course: Vijay Marolia, managing partner and chief investment officer of Regal Point Capital, advises not to overreact to elections, noting that they typically have minimal short-term impact on U.S. stock returns.
Keep an Eye on the Fed: Marolia also highlights the Federal Reserve’s interest rate policy as a more significant factor for market movements than election outcomes.
Diversify Like There’s No Tomorrow: Aaron Cirksena, founder and CEO of MDRN Capital, recommends diversification to protect against unexpected market fluctuations.
Don’t Sweat the Small Stuff: Anthony DeLuca, expert contributor for Annuity.org, suggests that market volatility around elections is usually short-lived. He notes, “Surprisingly, only one year prior and one month after a presidential election do markets experience more volatility compared to non-election years during all other time periods.”
Know Your Sectors: DeLuca also points out that certain sectors, like health, defense, and energy, could see more significant impacts depending on the election outcome. He adds, “Because of the current tariffs in play, international and emerging could also be affected.”
The Core + Satellite Approach: Marolia advises a strategy where investors maintain their long-term core holdings while adding satellite investments to leverage or hedge against current market conditions.
The Final Word: DeLuca emphasizes that the Federal Reserve has more influence on the market than presidential policies, saying, “The reality: The Federal Reserve Board has more controlling power with the Fed fund rate than the policies of any president.”
Overall, the article suggests focusing on long-term financial goals and maintaining a diversified portfolio rather than reacting to election news.