This week in a conversation with one of my favorite people, I discovered – or confirmed – something that was already obvious: the US Presidential election has nearly everyone on edge. There are varying degrees of “on edge” including,
- overwhelmed
- nervous
- confused
- curious
- angry
- discouraged
- (fill in the blank).
The bottom line is this particular election, due to the amount of vitriol in the media and language being used by both candidates, has left the vast majority of people – and to an extent the markets – in a form of a “waiting game.” Waiting for what? Waiting to do what?
(It should be noted here that mention in TGIF 2 Minutes of topics related to the US Presidential election are within the confines of financial planning and what is currently top of mind for clients and friends after hundreds of conversations, and not to take sides.)
Examples of “Waiting for what?” include:
- (the obvious) Who wins the election
- what stock and bond markets will do in the immediate and longer-term election aftermath
- what the World’s and World markets’ reaction will be
- the short- and long-term direction of personal and corporate tax policy
- changes to be made to estate and inheritance tax laws
- Etc., etc.
Possibly even more important…
Examples of “Waiting to DO what?” include:
- Investing or not investing varying degrees (or ample amounts) of cash savings
- Determining the basic asset allocation (proportion of stocks, bonds and cash) of overall portfolios
- Making spending decisions on major purchases such as homes, major home improvements, second homes, investment properties
- Deciding on a job switch – to a more risky or less risky opportunity
- Making changes to an investment portfolio or strategy
- Waiting on other life decisions
- The list goes on.
For those readers old enough to remember the turn of the millennium to the year 2000 (or “Y2K”) there was nervousness and almost a global stillness as the actual date approached – with some celebrations to boot! This time, with the 2024 US Presidential election there is a slightly different kind of “emotional edge.” It can help to talk to a trusted adviser about the aspects within our control and of course to talk with friends – and to manage to keep a sense of humor to try and take the edge off.
God bless America.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied upon for, tax, legal or accounting advice.