Does the 2024 presidential election, and some of the unprecedented events surrounding it, have you anxious about your investments and the potential impact of its outcome on the financial markets?

The politics of a high-stakes election can create significant volatility, much of it created by investor sentiment and confidence (or lack thereof). Investors often react to election-related news and developments and make predictions about upcoming policy changes to regulations, tax laws, global trade, economic growth prospects — the list goes on and on.

Many studies have been done around market performance leading up to presidential elections, along with the outcomes shortly thereafter. Comparisons have been drawn about which party has had the highest performance over the four-year election cycle and how markets have performed with a divided Congress versus one or the other party in control of both houses.

The problem here is that only a relatively short time frame is being considered. As an investor, your focus needs to be for the long-term. Remember, elections are just one of many factors that can influence market performance, especially in the short-term.

The good news is that sound strategic planning can help you navigate presidential elections with confidence.

Here are some strategies to help traverse election uncertainty:

√ Diversify your portfolio by spreading investments across various asset classes and sectors. This remains one of the most effective strategies to mitigate risk.

√ Avoid knee-jerk reactions by keeping your focus on broad-based economic trends and their potential impact, as opposed to reacting to daily news headlines.

√ Keep your focus on your long-term investment objectives to avoid reacting to short-term election-related volatility. Long-term investment horizons require a well-constructed financial plan.

√ Review and rebalance your portfolio in a disciplined manner that keeps your portfolio aligned with your investment goals and risk tolerance. This is also an opportunity to assess sector rotation as it relates to elections and policy adoption.

√ Understand that elections are only one of many factors influencing market dynamics. Markets evolve over time in response to supply and demand based on such things as:

Keep in mind that your wealth is your future stability. Don’t let partisanship impact your investment decisions or the process of your household wealth accumulation.

As a reminder, we’ll end this with a quote from one of the most respected investors of all time — Warren Buffett: “The stock market is designed to transfer money from the Active to the Patient.”

Wendy Bennett is a senior financial adviser at Bennett Associates Wealth Management in Butler.

Bennett Associates is a registered investment adviser and does not provide any legal, accounting or tax advice. The material prepared is the opinion of the author and for informational purposes.