{"id":13520,"date":"2024-11-11T18:26:50","date_gmt":"2024-11-11T18:26:50","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=13520"},"modified":"2025-01-20T14:49:21","modified_gmt":"2025-01-20T14:49:21","slug":"amid-election-uncertainty-remember-to-focus-on-the-long-term","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/amid-election-uncertainty-remember-to-focus-on-the-long-term\/","title":{"rendered":"Amid Election Uncertainty, Remember To Focus On The Long Term"},"content":{"rendered":"\n

Now is the Time for Investors to Stay Focused on the Long Term<\/strong><\/p>\n\n\n\n

The contentious U.S. presidential election is over. Given the roughly even split among voters, it\u2019s understandable that a great deal of readers are disappointed\u2014and others elated\u2014at the results. When it comes to investing, however, these emotions must be set aside. History makes it clear that the stock market has no political preference.<\/p>\n\n\n\n

My message to investors this week, and in future weeks\/months as the transition of power takes place, is clear: stay focused on your objectives<\/em> and remember what it takes to achieve them<\/em>. And that is, an asset allocation that\u2019s aligned with your long-term goals, income needs, risk tolerance, and one that\u2019s driven by economic fundamentals and corporate earnings. Short-term political outcomes should be walled off from these considerations.<\/p>\n\n\n\n

This is not to say that the election result does not matter. It does, as the president influences and sometimes establishes economic policies. But these changes do not take place immediately\u2014there is plenty of time to assess how campaign proposals take shape as actual policy, and\/or whether many of the ideas floated on the campaign trail get watered down substantially or scrapped altogether. Remember, too, that economic cycles do not fit neatly into four-year boxes depending on what party is in power.<\/p>\n\n\n\n

History reminds us to keep our cool. Since the inception of a version of the S&P 500 in the 1920\u2019s1<\/sup>, there have been 24 U.S. presidential elections. In 20 of them, the S&P 500 Index registered positive total returns. In the four instances when the stock market fell, the U.S. economy was in the Great Depression, the early days of World War II, the 2000 tech bubble, and the 2008 Global Financial Crisis.\u00a0Today, we have 4% unemployment, roughly 2.5% inflation, 2+% GDP growth, and solid corporate earnings growth (see below). This is the data that matters.1<\/sup><\/p>\n\n\n\n

A Guide to Strengthening Your Portfolio Through Election Cycles<\/a><\/u><\/strong><\/p>\n\n\n\n

As we navigate the post-election landscape, now is the perfect opportunity to revisit and strengthen your portfolio.<\/p>\n\n\n\n

Designing a retirement portfolio that holds up in any market environment can be challenging. So today, I\u2019m offering our guide, 7 Secrets to Building the Ultimate DIY Retirement Portfolio2<\/sup><\/u><\/span><\/a><\/em><\/strong>, which offer insights on:<\/p>\n\n\n\n