October 2024 Newsletter

OCTOBER 2024 NEWSLETTER

  Tips for Investors During Election Season

As elections approach, you may be worried about how the market will be affected. Historically, the market produces lower returns in the year preceding a presidential election, but it typically recovers and outperforms over the following 12 months. Regardless of what happens and who is elected, here is what you can do to prepare and manage risk for your finances (our clients already do this, but it doesn't hurt to reiterate it):

Diversify your portfolio. Having a diversified portfolio is always important, but it’s especially crucial during periods of volatility. Building a portfolio with a mix of different securities and investments in a variety of industries will protect your investments if the market fluctuates.

Use dollar-cost-averaging. Dollar-cost-averaging is a strategy where investors invest a fixed amount of cash into an investment at regular intervals. For example, you might invest $100 every Friday in a particular fund. Over time, dollar-cost-averaging can lower your investment costs while maximizing your returns.

Focus on long-term investments. As the market and prices change, it can be easy to panic and make impulsive decisions with your investments. But it’s important to remember that you’re investing for long-term goals, and short-term fluctuations won’t have lasting effects.

Take advantage of higher interest rates: Unless you simply cannot afford it, it’s a good idea to set aside cash for emergencies. And while it’s smart to keep your emergency fund in a liquid, accessible account when interest rates are high, it can be wise to move your money to a high-yield savings account or cash management account instead.

Call your financial advisor. We are here for you with any questions or concerns. I've said it before, and I'll continue to say it. Try to ignore the fear mongering media. They have blatant agendas, and the days of unbiased reporting are over. So please use us, that's what we are here for.

On a personal note, Nick is doing great in the classroom and on the ice. He loves the school and his team. We saw him play last week in an exhibition and he did great. I can't believe his improvement already. They are at the rink from 9-1 then off to class. Skating with all Division 1 players and the training they get is awesome. To see such an improvement only a month into the season is impressive. Being a freshman goalie, he will have to earn his time, which is to be expected, but I have no doubt that he will. I am so excited for him. Lexi has finished her college visits and is almost done with her college essays. Her top 4 choices are Fairfield, Babson, Bentley, and Bryant. All great schools, with more great schools for her second choices. She has worked so hard, and I am so excited for her. On October 14th, my princess turned 18 years old!! I can’t believe how fast time flies. As I told her, she will always be my baby girl.

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. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.​