Markets and the Democratic Process

| November 05, 2020
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The American people have voted, casting a record number of ballots under extraordinary circumstances, which is a testament to the enduring resilience of our democracy. Determining the outcome of our elections is a process, but it usually moves so quickly it barely gets noticed. This year it’s taken longer than normal, but the process itself hasn’t changed. For many, this uncertainty on top of an already heated election season has created additional anxiety and frustration.

This has been a challenging moment in our nation’s history, but despite the increased uncertainty, we believe that the nation will move forward. The basic principles of sound investing remain the same: Focus on the big picture and stick to your long-term investment plan.

While the process of choosing our next president has lasted longer than it usually does, the election eventually will achieve a resolution that will be widely accepted by an overwhelming majority of the nation. Our democratic institutions have carried us through many political crises, from the untimely loss of President John F. Kennedy, to Watergate, to the Florida recount controversies in the 2000 presidential contest between President George W. Bush and former Vice President Al Gore. There’s no reason to think the current situation will be any different.

This uncertainty around the election should not slow our economic recovery, even as the democratic process moves forward, along with the possibility of legal disputes and protests. Politics is the backdrop against which our economy operates, but people will continue to go on trying to make a living and companies will continue to strive for profitability over time.

Companies are skilled at adapting to a variety of political environments, and financial markets most likely will look past any controversies and toward an eventual resolution.  Despite the strong emotions many may have been feeling during the uncertainty of this Election, it’s important to recognize that US political and economic systems are resilient and can, after an adjustment period, adapt to any new reality. Many of our investment horizons extend far beyond this election season and even any particular political cycle.

With emotions high, it’s important to focus on what matters most: independent investment advice and executing long-term investment strategies. This shouldn’t change regardless of the outcome of any particular election.

Please contact me if you have any questions.

Sincerely,

Bryan Foronjy, CFP®

Founder and Principal Wealth Manager

Foronjy Financial

CA Insurance Lic. # 0F84170

www.foronjyfinancial.com

 

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Bryan Foronjy is a registered representative with, and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Strategic Wealth Advisors Group LLC, a registered investment advisor.  Strategic Wealth Advisors Group LLC and Foronjy Financial are separate entities from LPL Financial.

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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. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

All data is provided as of November 3, 2020.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All index data from FactSet.

This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

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