Election Effect: How do elections impact stock markets?
One of the most often asked questions Professor Nathan Mauck and myself, Chuck Carnevale, are getting from investors is what is going to happen after the election? Elections are big deals and they bring a lot of investor anxiety – election effect!
We both agreed to the reality that politicians don’t run the economy, and they certainly don’t run the individual stocks that investors invest in. Now, policy decisions can have an impact on how good or how fast the company is able to grow, or how good the economy is going to be, interest rates, etc., but in the long run you hire companies that have good management so they can navigate through troubled waters.
What we have decided is let’s go ahead and do a video and try to bring to you some of the realities of what really happens in the short run during a political event. Remember, investing is a long game. Politics and election results may have a short-term impact, but in the long run it’s all about the fundamentals of the business you invest in.
FAST Graphs Analyze Out Loud Video – SPDR S&P 500 ETF Trust (SPY), Apple Inc (AAPL), Broadcom (AVGO), JP Morgan Chase & Co (JPM), Exxon Mobil Corp (XOM), UnitedHealth Group (UNH)
Disclosure: Long AAPL, AVGO, JPM, XOM
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.
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