Stop me if you've heard this one before: “You may care more about the outcome of the presidential election than your portfolio.”
Now that the election season is behind us, it’s a good time to reflect on what the results might mean for the economy and your investments. While much attention goes to the presidency, it’s important to remember that changes in the House of Representatives and Senate can often have a greater influence on the policy agenda for the coming years.
As we look at the data in the chart below, history reminds us that the economy tends to move forward over the long term. For instance, the gross domestic product (GDP) has fluctuated under different administrations but has generally trended upward. Similarly, while inflation—measured by the Personal Consumption Expenditure price index—has varied, it tends to stay within a range over time.
This perspective doesn’t diminish the challenges of rising prices or other financial concerns, but it does highlight the resilience of the U.S. economy, a nearly $30 trillion system shaped by countless factors, both in and outside of Washington, D.C.
As we enter the holiday season, it’s also a great time to focus on the long-term. Historical data on unemployment, interest rates, and the markets consistently reinforces an essential truth: “It’s all about time in the market, not timing the market.”
I understand that elections and economic uncertainty can bring anxiety, but now is an excellent time to revisit your financial goals, especially as we head into a season of gratitude and giving. If you have concerns or questions, I’d love to hear from you. Let’s work together to ensure your financial strategy is aligned for the future.
Here’s to a bright and joyous holiday season!