Did you know that the third quarter was the best quarter for the US Economy on record? The second quarter was the worst quarter on record for the economy…funny how that works isn’t it.
Are you as ready as I am to see commercials that are not campaign ads? Over the last few months, I’ve been asked, probably more than 500 times, what I think the market will do based on election results. I appreciate clients and friends valuing my opinion on the matter, but frankly, like everyone else, I have no idea how the market will respond to the election results…in the short term. In the long term, the market is going up - I am 100% certain of that. Despite ANY policy issues, the market is going up. In fact, the market is going to go up a lot over the long haul.
How can I be so sure of this? The publicly traded companies that make up the stock market are founded on one key business model, to operate for a profit. To make a profit regardless of tax policies, international trade policies, or any other political policies that may make business harder or easier. They will make the necessary changes to be competitive in their respective industries or they will lose that market share to some other publicly traded company. Decade after decade, election after election, president after president, the markets charge forward and upward over time. Publicly traded companies are amazingly resilient in their ability to adapt and increase profits despite changing economic and political climates.
So, if you haven’t already, GO VOTE! Vote for the issues that matter the most to you. Mark my words, the stock market is going to go up no matter who wins this election, or the next election, or the one after that.
So bring back the Chick-fil-A cows, the Geico woodchucks, and Peyton Manning selling insurance with Brad Paisley already!
As always, we hope you find the Weekly Market Review both informative and interesting. Have a great week!
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Trevor N. Coe, CFP®