August 2024 Newsletter

AUGUST 2024 NEWSLETTER

As rhetoric rises over the next few months, it's important to act rationally rather than emotionally. Listen to different perspectives. Watch competing news stations and ignore "clickbait". Politics used to be something we didn't talk about, but now it's the dominant conversation far beyond the dinner table. While the stakes seem dire, relax - they're not. Our country has survived and thrived through the first 59 presidential elections and the 60th will likely be no different. We're going to make it - regardless of the outcome.

While election years can be volatile, they don’t always result in negative outcomes, and the long-term effect of presidential elections on portfolios and 401(k)s is minimal. There is no conclusive evidence that shows the president’s party has any meaningful impact on stock market returns. Market returns are influenced by corporate earnings, monetary policy, business cycles, inflation, and interest rates. The underlying economic conditions have a far greater effect on the market’s returns than a president’s party.

While election outcomes can impact certain sectors and industries, making drastic changes to your portfolio solely based on election results is often unnecessary and can be risky. Diversification and a long-term investment strategy are generally more effective in navigating market fluctuations. Investors can become overly focused on short-term market movements driven by election-related news, leading to decisions that may not align with their long-term investment strategies. Avoid making impulsive decisions based solely on election-related news. For the news media, it’s a race to produce content and captivate audiences. Maintain a balanced portfolio aligned with your risk tolerance and investment goals.

Filter out the noise and stick to a disciplined investment strategy focused on long-term goals. It is normal to feel stressed or overwhelmed about your finances during major market events like elections. Our advice is to lean on us if you have any concerns. Please try to pay little attention to the media. As most of you know we have never been a fan of the media, and the last few years have proven we are right to feel that way. They have agendas, omit truths, and simply want to create fear. If you have any questions, please call the office and we will be happy to discuss anything with you.

On a personal note, Lexi is having a great time with her friends at the pool, beach, and shopping. She loves her job, and she loves seeing her Roth IRA statement growing. Her list of colleges she’ll be applying to is complete. I can’t wait to see where she ends up. Nicky is having a great summer working out, skating, hanging out with his friends and his girlfriend. He just finished designing his goalie mask and sent the specs to Bentley. He is super excited to see the finished product. He reports to school August 29th to start his college career. I am so excited for him because he has worked so hard, and he earned this. Now he’s playing Division 1 college Hockey at one of the best business schools in the country. He’ll be majoring in finance to prepare him for one day joining Dad in the family business. Bubba/Jim would be on cloud 9!!!!!

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.