This is just one perspective that gives insight into how some investment managers view the current economic environment. It's important to note that we'll likely see considerable volatility leading up to the election.
As we approach a political crossroads, we see two drastically different versions of leadership. The question today is: "what will that mean for the markets?" As with any potential change of party, pro-growth policies become a focus when forecasting stock market movements. There is a general fear on Wall Street that a shift from a republican presidency to a democratic one will crush any existing pro-growth strategies. While that may be the case with certain candidates, a Biden presidency may mute much of the negative impact that would otherwise be expected. When it comes down to it, economic forces have been the determining factor, not policy change. This is evident when analyzing market performance during republican and democratic leadership cycles. With that said, the influence that policy changes have on taxes and regulation present risks that need to be watched closely.
The best investment strategy is to remove emotional decision making and focus on your longer term goals. It's the difference between selling at the bottom and buying at the bottom. As long as you have a fiduciary financial advisor in your corner - one that truly cares about your success - your chances of achieving your goals may increase dramatically.
This is only a quick summary of the current state of the economy, so if you have any questions or would like to discuss it in detail, please reach out to Pharos Wealth Management anytime. Contact Us
*Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.