With election season heating up, some investors might be tempted to hit the pause button on their investment strategies. While political headlines can be noisy, history suggests the stock market’s long-term performance isn’t significantly disrupted by elections.

Here’s why you can stay calm and invested:

• The stock market reacts more to a company’s financial health and overall economic conditions than short-term political events. Strong earnings reports, technological advancements, and economic growth tend to have a more significant impact on stock prices.
• According to a recent Bloomberg study, the S&P 500 has delivered positive returns in 75% of election years since 1928, suggesting that elections do not foreshadow a market decline.
• Even with a change in leadership, translating campaign promises into actual policies takes time. The market often anticipates and adjusts to potential policy changes before they are fully implemented.
• Investing for retirement or long-term goals is a marathon, not a sprint. Focusing on short-term market fluctuations caused by election cycles can lead to impulsive decisions that might hurt your long-term returns. Staying invested allows you to benefit from the power of compound interest.
• Spreading your investments across different market sectors can help mitigate risk. A diversified portfolio can help weather the storm.

By focusing on long-term investment goals, maintaining a diversified portfolio, and not getting caught up in daily headlines, you can navigate election season with a clear head. A well-defined investment strategy can help you achieve your financial goals regardless of the political climate.

Hendricks Wealth & Estate Management will be speaking further on this topic during a FREE “Don’t Do Dumb” Webinar on May 22, 2024 at 5:30 p.m. CST. Plus, someone in attendance will win 2 tickets to a Cubs game at Wrigley Field. To reserve your spot or learn about future “Don’t Do Dumb” financial sessions, visit www.jghfs.com/events. Questions? Call us at 847-428-3997.

Hendricks Wealth & Estate Management

650 Spring Hill Ring Rd., Ste. 2000

West Dundee, IL 60118

(847) 428-3997

www.jghfs.com