Benjamin Franklin advised, “Don’t put off until tomorrow what you can do today.” This adage feels particularly applicable to high net worth individuals concerned over potential tax reform under a new presidential administration.
The global pandemic, unprecedented government stimulus, a record low GDP report, booming technology stocks and a red-hot IPO market – 2020 has been quite the year – and it is not over!
Global pandemic, unprecedented government stimulus, record low GDP report, booming technology stocks and a red-hot IPO market – 2020 has been quite the year – and it is not over!
While elections are important to any functioning democracy, to investment professionals, elections are primarily significant due to their effect on portfolios. In particular, investors must understand – and anticipate – the correlation between the outcomes of the election and the markets, if any.
U.S. dollar strengthened in September as the effects of existing monetary stimulus wane and expectations for fiscal stimulus before the election fade. Market participants bid up financial asset risk premia in response to mounting economic and political risks. We encourage investors to keep their investment horizon in focus and not allow emotions to influence portfolio positioning.
While it is common perception that the political party in the White House drives markets and the economy, history shows us that neither party can consistently be credited with superior economic or financial market performance.