Here we are after the longest election campaign in history. It’s the Judgement Day. For months the polls have been up and down, but within hours we should know for sure who will be living in the White House from January 20th on.
As we all know, all kinds of promises are made during campaigns and perhaps some will be kept as a new administration takes over the reins. What’s likely is that we will continue to have a federal government made up of executive, legislative, and judicial branches and that much of the life we have gotten used to will not change.
Still, there are always changes in the wind: some promising, some concerning. What disturbs many of us, however, is the exceedingly partisan environment in Congress, which has largely paralyzed legislation over the last few years. If nothing else, we would hope for removal of the recent roadblocks and greater efforts among our elected representatives to start doing their jobs.
From an investment perspective, we are dealing with a combination of hope and uncertainty. The hope is that the corporate community will regain upward momentum in profits following an extended period of marking time. That’s the life force behind stock market prices.
The uncertainty is what a new administration will actually be able to bring to the table. Will there be renewed support of business? Will taxes be reduced? What will be done to preserve and increase the jobs available to Americans?
We’ve heard the promises, but now we need to learn which will be kept and which really should not have been taken seriously. As the polls close in what may well be the most important election in years, we keep our fingers crossed and hope for the best.
With that said, the best advice is to continue following the time-tested rules of investing. This is a marathon, not a sprint. Plan well, be patient, and you will be well rewarded.