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Blog: The Live Greater View: Navigating Election-Year Investments

Blog: The Live Greater View: Navigating Election-Year Investments

January 31, 2024

As investors enter another election year whirlwind, they encounter a dynamic landscape emphasizing the significance of considering the implications for their long-term portfolios. In the 2024 presidential election, the intense eight-week primary season, starting with the New Hampshire primary and leading to Super Tuesday, adds an additional layer of complexity.

Election issues, voter turnout, and the limited legislative agenda in election years further impact investment strategies. Economy remains a top concern for voters across parties, while legislative priorities take a back seat as Congress focuses on campaigning. Amidst market volatility during election years, maintaining discipline in investment decisions is crucial. Investors are advised to prioritize market fundamentals over reacting solely to election outcomes, given the historical unpredictability of market movements during these periods. For example, markets do tend to be more volatile in the short run before elections, but then typically recover.

Source: JP Morgan Asset Management

Additionally, investing strategies based on political ideologies and sector performance under different presidencies come into play. For example, Democrats presided over the best years for 10 out of the 11 sectors but without much consistency on when that occurred, as shown below. It appears that economic context often matters more (i.e., financial crisis of 2008, 2000 tech bubble) than who is or could be in the White House. 

In summary, a balanced and informed approach, considering both political dynamics and broader economic fundamentals, is crucial for success in navigating election-year investments.

If you are not confident in your portfolio positioning or would like us to review your current approach to investing, please reach out to us! Conveniently schedule time with one of our advisors here: https://www.vlpfa.com/schedule-a-meeting

Disclosure: Investment in mutual funds is subject to risk and loss of principal.  There is no assurance or certainty that any investment strategy will be successful in meeting its objectives. Investors should consider the investment objectives, risks and charges and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds. Contact our office at 8391 Old Courthouse Rd. Ste. 203 Vienna, VA 22182 or (703) 356-4360 to obtain a prospectus, which should be read carefully before investing or sending money.