Thursday, September 29, 2016

Six truths that won't be affected by the election's outcome.

It is a common perception that the stock market will fare better when a Republican is in the White House because the Grand Old Party tends to be pro-business. A related perception is that Democrats hinder economic and market growth with higher taxes and increased regulation. The historical evidence just doesn't support either notion.

In truth, investors who stay the course are likely to fare much better than those who invest only when one of the two major political parties controls the White House. In fact, if you look at the returns of the Dow Jones Industrial Average since its invention in 1897, it's clear the stock market does not favor either party.
Everything Investors Need to Know—and Should IgnoreAbout the Upcoming Election
  • Gridlock doesn’t mean nothing gets done.
  • Changes in Washington don’t typically come all at once but in increments.
  • Campaign rhetoric doesn’t always influence what happens during a president’s tenure.
  • Consumers and businesses have a far greater impact on the economy than the government.
  • The state of the economy influences who is president, not vice versa.
  • The stock market doesn’t care if the public is happy with who is president. 
The U.S. election will, as always, give us sufficient reasons for both optimism and despair but as an investor, your long-term goals, plan and behavior should shape your investment decisions, not your reaction to who wins the presidential election. However, if you have needs or concerns that you would like to discuss with us in person, please give us a call at 281.990.7100 or email!

"Well-positioned, well-led companies will create investment value regardless of who sits in the White House."

Jerry Webman, Ph.D., CFA Chief Economist for OppenheimerFunds