Midterm Elections, Change, & Common Concerns

Although the title of this blog contains the words “midterm elections,” it doesn’t have anything to do with politics or who you should vote for. Our goal has been—and will always be—to serve our clients while giving them the tools and advice they need for long-term financial success. Nothing will disrupt our commitment and loyalty to those who trust us to support them. We aren’t discussing politics because political views are not our concern. Many people we speak to are concerned about the changes that may occur because of the midterm elections.

How often have you heard people discussing the stock market, inflation, or an impending recession? These are at the forefront of people’s concerns and are directly tied to the midterm elections. Depending on your personal stances, you may have opinions on how these issues may improve because of them. 

Key Points to Put You at Ease

Many people want to know when the right time to invest is. We must reiterate the inherent dangers behind believing you can time the market. When Warren Buffet said that his favorite holding period was forever, he did so because you work the market over the long term. Look at the basic principles involved with dollar-cost averaging. By investing at regular intervals over a wide range of stocks, you can survive and thrive despite economic fluctuations. 

Secondly, when Worth Advisors, LLC, offers you financial advice, we always consider a wide range of factors. We want to know your age, your goals, and the type of investment you are making. We assess many factors because our goal is to protect your assets. This is why we wouldn’t tell someone in their nineties to invest in a start-up or advise a 20-year-old to only invest in Certificates of Deposit at the bank.

Will My Investments Plummet?

To give you a better idea of what we mean by focusing on the long term, we should put forth some interesting statistics released by Vanguard. They went back to 1860 and showed that historically, investments had performed the same in an election and non-election year. Additionally, take a closer look at this: 

  • The annual compound return with a Republican president: 8.3%
  • The annual compound return with a Democrat president: 8.4%

Ironically, long-term investments won’t get derailed by short-term fluctuations and changes. If you still have concerns, schedule a consultation with the trusted financial professionals at Worth Advisors, LLC. Our goal is to serve you, and we will do that despite what is happening worldwide. For more information about how we can achieve that, reach out and schedule a consultation.