Monday – July 22,2024
Presidential Politics and Your Investments
Good Morning,
On Sunday, 7/21/24, in a historic (and stunning) social media post, President Biden announced that he was pulling out of the race for a second White House term. He went on to throw his support to Vice-President Kamala Harris, encouraging the Democratic party to unify behind her.
This announcement adds yet another layer of complexity to an already complex investment (and political) landscape. At this point, given the fluidity of the situation, there are more questions than answers, as the uncertainty in the data supports no conclusions:
Questions You May be Asking:
* How does this announcement affect the chances of a Democratic or Republican presidency in 2025?
* Does it increase or reduce the likelihood of a one-party sweep of the White House and both houses of Congress?
* What are the potential impacts on fiscal and monetary policy and, consequently, economic and market performance?
* How does this announcement affect the so called “Trump Trade?”
* Will this create more (or less) inflationary pressures?
* Is it now more likely that there would be a DIVIDED government
* How does this announcement affect YOUR PARTICULAR INVESTMENTS AND FINANCIAL PLAN?
General Principles:
* Presidential elections have NO LONG-TERM IMPACT ON OUR ECONOMY. For instance, a hypothetical investment of $10,000 in 1961 would have grown to more than $5,000,000 by the end of 2023**, during which time there had been 12 presidential elections.
* Your investment results will be based on corporate earnings, cash flows, and reinvested dividends, not on the news flow and current events.
* We are goal-focused, plan-driven, long-term equity investors. Our portfolios are derived from and driven by your most cherished lifetime financial goals, not from any view of the economy or the markets.
* The economy cannot be consistently forecast, nor the markets consistently timed. We do not believe it is possible to gain any advantage by going in and out of the markets, regardless of current conditions.
For answers to your questions, and discussion, we are planning to hold a client pre-election conference call (via Zoom) in September and will soon provide details.
In the meantime, we remain available to speak with you about this, along with other matters on your mind. Please feel free to call the office (954) 575-9323, my cell (917) 509-2306, or book some time using our calendar system: https://calendly.com/efgplan
We are grateful for your business.
Be well and invest wisely.
Doug
Eaton Financial Group is a registered investment adviser. Registration does not imply a certain level of skill or training. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.