Market Volatility - How the US Election Might Impact Finances
The US Election has now taken place, but its impact on financial markets may continue to unfold over the coming weeks and months. Elections often bring uncertainty to financial markets as new political positions, policy proposals, and government leadership changes come into focus. While short-term market volatility is possible, it’s important to stay focused on the bigger picture and your long-term financial goals.
Why Do Elections Cause Market Volatility?
Elections can create fluctuations in financial markets for several reasons:
Potential Policy Changes:
A new administration may introduce shifts in tax, economic, or regulatory policies, influencing businesses and investments.
Market Sentiment:
Investors often react to political rhetoric, post-election commentary, and proposed policies, leading to market fluctuations.
Economic Context:
Recent improvements in the US economy, such as interest rate cuts earlier this year, may help stabilise market confidence, even during political transitions.
Key Consideration: The Tax Cuts and Jobs Act
One of the most debated issues during this election was the Tax Cuts and Jobs Act (2017). While the election has brought new proposals to the table, significant tax changes are unlikely to occur before 2025. This provides stability for the near term, allowing investors to avoid making hasty decisions based on speculative outcomes.
How We’re Managing Your Investments
At Adams Financial Group, we take a proactive yet measured approach to managing your portfolio during times of political change. Here’s what you can rely on:
Diversification: Your portfolio is structured with a long-term strategy to weather short-term uncertainties.
Active Monitoring: I consistently review your investments, ensuring they remain aligned with your financial objectives and market conditions.
Individualised Strategy: Investment decisions are always tailored to your goals and timeframes, rather than being driven by political headlines.
It’s natural to feel concerned during periods of uncertainty, but reacting impulsively can often do more harm than good. Long-term investment fundamentals should guide your decisions.
What You Should Do
The best course of action is to remain focused on your financial plan and trust in the strategies we’ve put in place. Election outcomes rarely necessitate immediate portfolio changes, and it’s important to let the dust settle before making any major decisions.
If new developments warrant adjustments, I will reach out to discuss potential changes tailored to your goals.
If you have any questions or concerns about how the US Election could affect your finances, don’t hesitate to get in touch. At Adams Financial Group, my goal is to provide you with peace of mind and confidence in your financial future, no matter what the headlines bring.
Contact us today to learn more about how we can support your investment journey.