As Election Day gets closer, investors tend to key in on stocks. According to edwardjones.com, election years have been positive for stocks with equities returning on average a 9.5% annually and keeping a nonpartisan approach to investing can help achieve a better portfolio performance over time. Local Edward Jones Financial Advisor Ryan Painter explains an election has a greater impact socially than economically:
“There are certain policies and certain things that are more business friendly, but we have been through all different types of presidents, we have been through all different types of policies. I just remind people it is not the first time that we have had these types of things and the markets have continued. The companies are going to adapt. They are going to go out and say ‘Well, I guess our taxes are higher’ or ‘I guess our regulations are higher and we are going to have to do some things about that to be profitable.’ Then as shareholders and investors, we win either way because if they are profitable, we are profitable. People want to invest in profitable businesses. When people invest, the stock goes up. Not to minimize the importance of elections and voting, but it has a much bigger impact on our social lives than it does on us economically form a market perspective,” Painter informs.
Hear more financial advice from Ryan Painter during Financial Focus on Mondays at 11 am on Sunny 97.7 WMOI and AM 1330/FM 94.1 WRAM.
