When the Election is Over

6/1/2020

In six months, there will be an election for President of the United States. In January 2021, that elected official will begin his term in office, whether it be a second term for President Donald Trump or a first term for former Vice-President Joe Biden.   

Investors who think President Donald Trump is going to be reelected are going to have one direction they think the economy will go, and will want to invest accordingly. Those who think Democratic candidate Joe Biden is going to be elected will have a different view of the future economy and thus have a different plan of attack for investing strategies.
Spectrem’s study Tracking The Election 2020 asked investors in early May what they thought would occur when the presidential election is held in November, and what it would mean for the U.S. economy. Here are the results:
Considering the possibility that President Trump will be reelected, 44 percent believe that will produce positive results for the economy, while 40 percent believe it will have a negative effect. Those percentages are much different, however, when investors are segmented by gender. Fifty percent of males think President Trump will have a positive impact on American commerce while only 34 percent of females feel that way. Instead, 48 percent of females think President Trump’s impact will be negative, compared to only 35 percent of men who believe that. 
Asked what would happen if Biden is elected, 32 percent believe it will have a positive impact on the economy, compared to 43 percent who think it will hurt to have the Democrat in charge. A similar attitude exists based on gender segmentation; while 30 percent of men think Biden would be positive and 48 percent think he would have a negative impact, women are equally split, with 36 percent saying Biden would be a positive influence on the economy and 35 percent thinking he would be have a negative impact. 
As investors, it is wise to have some idea what is going to 
happen when the election is over. But at this point, that information is only speculation. Conversations with your advisor could help you prepare for the inevitable changes which will occur, and perhaps prepare for portfolio for either of the two outcomes.