With the presidential election just a few months away, many Americans are feeling anxious about the future of their finances. A Yahoo News poll found that approximately 60% of people describe themselves as feeling ‘very’ or ‘somewhat’ anxious about the 2024 election. Connecticut-based financial advisor Bill Leavitt has been receiving calls from clients who are concerned about how the election will impact their finances.
Clients have asked Leavitt if they should be doing things differently, if they should hold off on investing, or if it will affect their 401k plan. When it comes to managing money, Leavitt advises his clients that historically, the financial markets tend to do well during an election year, regardless of the party in power. “Regardless of if it’s democrat or republican, the financial markets typically do well during this period of time,” said Leavitt. Several studies have looked into this topic, including a Fidelity study that found that during an election year, the stock market on average goes up 9.1%. The year after an election, the market goes up on average 8.3%. The study found that it doesn’t seem to matter who is on the ballot.
While it is essential to stay informed and consult with a financial advisor to make informed decisions about your investments and financial planning, Leavitt advises his clients to remain calm and focus on long-term financial goals as they navigate any uncertainties that may arise during the upcoming presidential election.
