Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by John Nelson, financial planner at NelsonCorp Wealth Management. Welcome back, John.
John Nelson:
Thanks for having me, Brandy.
Brandy Auterson-Hurst:
So there have been a lot of changes in the presidential race lately. Do you have any insights into how the upcoming election might affect financial markets?
John Nelson:
Yes, there certainly are. And I’d say this year, I hear that firsthand probably more than ever. And it’s a big assumption that many have that depending on the party that’s in office can have a significant impact on the direction of where financial markets can move. And the graphic I have with me today illustrates history says something a little bit different.
And if we look back, this goes back to 1948 and we’ve got it shaded based on party. And this is just looking at the S&P 500 Index and there’s no real trends or anything that jumps off the map at viewers here in terms of what party holds office and the performance there being significantly different. So, all that to say over a lot of data here who holds the White House has less impact, I think, than a lot of viewers assume it would.
Brandy Auterson-Hurst:
How should viewers be thinking about this?
John Nelson:
I think it’s focusing on other items, those like the current economic issues, economic condition, Fed policy, investor behavior, those type of items have far better indicators and direction of where financial markets may go versus simply looking at who controls the White House as an isolated decision maker. So, focusing on those things that matter in a little less stock on who holds the White House.
Brandy Auterson-Hurst:
All right, John, thanks for your time today.
Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.
Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.