{"id":13517,"date":"2024-11-06T17:18:38","date_gmt":"2024-11-06T17:18:38","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=13517"},"modified":"2024-11-06T17:18:38","modified_gmt":"2024-11-06T17:18:38","slug":"dont-let-election-jitters-impact-your-investment-strategy","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/dont-let-election-jitters-impact-your-investment-strategy\/","title":{"rendered":"Don&#8217;t Let Election Jitters Impact Your Investment Strategy"},"content":{"rendered":"\n<p><em>Melanie D. from Harrisburg, PA asks: <\/em>Hi Mitch, I\u2019m admittedly getting a bit jittery with the election smothering the headlines this week. The instability and uncertainty surrounding it all makes me wonder how markets could remain relatively calm. I\u2019m not thinking about selling any of my positions, but I could use a bit of reassurance about the road ahead. Thank you.<\/p>\n\n\n\n<p><strong>Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n<p>Thanks for writing, Melanie. Many people are feeling uneasy about the U.S. presidential election \u2013 a feeling that\u2019s likely to last at least several days, if not weeks. A general sense of uneasiness is totally understandable.<\/p>\n\n\n\n<p>I appreciate your stance about not selling any positions because of the election or the results. I think this is the correct mindset. It is rarely necessary or prudent to adjust your investment strategy because of an election. Investors should participate in the democratic process by casting a vote, not by making a trade.<sup>1<\/sup><\/p>\n\n\n\n<p>As I\u2019m writing my response to your question, the election results are still unknown. This may be the case for some time. But don\u2019t let election uncertainty be a rationale for shifting your portfolio\u2019s allocation or changing your investment strategy. The market responds to changes in earnings expectations and economic growth fundamentals over time, not to changes in political leadership. If the new president enacts a raft of policies that directly impact earnings and growth fundamentals, there will be time to adjust investment portfolios accordingly. But we\u2019re at least a few months away from that point, regardless of who wins.<\/p>\n\n\n\n<p><strong><u><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_11_07&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_11_07&amp;content=volatility_can_be_good_guide\">How to Leverage Election-Driven Market Volatility<\/a><\/u><\/strong><\/p>\n\n\n\n<p>Election results may capture attention, but it\u2019s earnings expectations and economic fundamentals that fuel long-term growth.<\/p>\n\n\n\n<p>Our guide, <em>&#8220;<\/em><strong><em><u><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_11_07&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_11_07&amp;content=volatility_can_be_good_guide\">Using Market Volatility to Your Advantage<sup>2<\/sup><\/a><\/u><\/em><\/strong><em>,&#8221;<\/em> reveals how investors can harness market turbulence during times like these to refine strategies and seek strong returns over time\u2014insights shaped by decades of experience.<\/p>\n\n\n\n<p>This guide explores:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How market volatility can \u201cshake up\u201d complacent investors<\/li>\n\n\n\n<li>Potential bargains that may be uncovered through turbulence<\/li>\n\n\n\n<li>Why volatility may help prevent overheating and market \u201cbubbles\u201d<\/li>\n\n\n\n<li>What history shows us about opportunities for steady investors in turbulent markets<\/li>\n\n\n\n<li>Plus, more ways you may be able to benefit from a volatile market<\/li>\n<\/ul>\n\n\n\n<p><strong><u><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_11_07&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_11_07&amp;content=volatility_can_be_good_guide\">Download Our Guide, \u201cUsing Market Volatility to Your Advantage\u201d<sup>2<\/sup><\/a><\/u><\/strong><\/p>\n\n\n\n<p>In terms of the time needed to declare a winner, history suggests the markets can handle a period of political uncertainty. In the Bush-Gore 2000 election, it took 35 days for the Supreme Court to end recounts and declare Bush the winner. In that time, the S&amp;P 500 fell -4%, but that was also a period when the technology bubble had burst. The Nasdaq 100 and S&amp;P 500 Technology sector had sold off by double-digits, pulling markets down in aggregate, but non-Technology sectors held up relatively well.<\/p>\n\n\n\n<p>In 2020, it took four days to call the race, and in that time 10 of 11 S&amp;P 500 sectors moved higher. Stocks continued to rally as court cases contesting the results mounted, and the bull market continued throughout January and the first quarter of that year, despite the insurrection at the Capitol.<\/p>\n\n\n\n<p>To calm your nerves, I\u2019d recommend trying to stay focused on fundamentals. Data last week showed the U.S. economy expanding at a 2.8% annual pace in the third quarter, with a 3.7% year-over-year jump in consumption. These are solid figures. The jobs number disappointed with just 12,000 new jobs added in October, but hurricanes and the Boeing strike had a negative impact. The trendlines continue to show a U.S. labor market on solid footing.<\/p>\n\n\n\n<p>Market volatility may be elevated in these coming weeks, but don\u2019t let it rattle you. Election outcomes don\u2019t determine market returns over the long term, economic and earnings growth do.<\/p>\n\n\n\n<p>That\u2019s why now is an ideal time to consider how to make volatility work in your favor. Our guide, <em>\u201c<\/em><strong><em><u><a href=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_11_07&amp;content=volatility_can_be_good_guide\" data-type=\"link\" data-id=\"https:\/\/go.steadyinvestor.com\/arrow-use-volatility-to-your-advantage?source=zim&amp;medium=blog&amp;term=mitchsmailbox_zim_2024_11_07&amp;content=volatility_can_be_good_guide\">Using Market Volatility to Your Advantage<sup>3<\/sup><\/a><\/u><\/em><\/strong><em>,\u201d<\/em> draws on decades of insights to help investors refine strategies and uncover potential opportunities for strong returns during uncertain times.<br>\u00a0<br>Download our guide to get insight into:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How market volatility can \u201cshake up\u201d complacent investors<\/li>\n\n\n\n<li>Potential bargains that may be uncovered through turbulence<\/li>\n\n\n\n<li>Why volatility may help prevent overheating and market \u201cbubbles\u201d<\/li>\n\n\n\n<li>What history shows us about opportunities for steady investors in turbulent markets<\/li>\n\n\n\n<li>Plus, more ways you may be able to benefit from a volatile market<\/li>\n<\/ul>\n\n\n\n<p>If you have $500,000 or more to invest, download this free guide today by clicking the link below.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many investors are feeling uneasy this year&#8217;s election. Mitch offers his thoughts about this year&#8217;s contest, and market response to previous elections.  <\/p>\n","protected":false},"author":3,"featured_media":13518,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66,71],"tags":[],"class_list":["post-13517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitchs-mailbox","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=13517"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13517\/revisions"}],"predecessor-version":[{"id":13519,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/13517\/revisions\/13519"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media\/13518"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=13517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=13517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=13517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}