Control of Congress & the Stock Market
During election season, it’s only natural for us to focus on the election results and what they mean for future progress.
We should be careful though not to let our emotions about election results overly influence our investment decisions.
While policy certainly can impact company profits, there are also a lot of other influences that impact returns (geopolitical risks, inflation, interest rates, investor sentiment, technological advances, etc.).
And policy and congress will of course continue to change as well.
One thing that is consistent though, is that when you buy a stock, you are a shareholder in a company. And companies are focused on growth, regardless of who is in power.
As you can see below, the stock market has trended up, regardless of who has controlled congress in the past:
So while it may be easy to focus on what recent political changes mean for our future, it’s important to remember that markets have rewarded the disciplined investor over time, regardless of who is in power.
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Disclosures:
Past performance is not a guarantee of future results. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio.
In US dollars, growth of wealth shows the growth of a hypothetical investment of $1 in the securities in the S&P 500 Index. S&P data © 2022 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved.
Data presented in the growth of wealth chart is hypothetical and assumes reinvestment of income and no transaction costs or taxes. The chart is for illustrative purposes only and is not indicative of any investment.
Investment products are not FDIC Insured, bank guaranteed and may lose value
Impact Financial, LLC (“Impact Financial”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Impact Financial and its representatives are properly licensed or exempt from licensure. This article provides general information and should not be taken as advice or a specific recommendation. Please consult with a trusted advisor to receive advice specific to you.
