How can I protect my portfolio from a post-election drop in stocks?
Concerned about how this election will come out? You are not alone. Unfortunately, the prevalence of negative campaigning can add to our angst and uncertainty. Fortunately, market history is clear – trying to maneuver a portfolio based on how an election proceeds and how we feel about its outcome is speculative and not something a prudent investor needs to do.
To help you reconnect with the prudent investor inside you and push away the speculator that is trying to divert your attention to the short term, we share below some past posts related to this topic. This time really is different but every time has been different too. What has never changed is that your odds of having a successful investment experience over your lifetime are better as an investor than a speculator.
Our clients are appropriately positioned for their long-term goals and their investments are managed by a MFT team that knows how to handle news, noise, and both good and bad market behavior.
Our clients are appropriately positioned for their long-term goals and their investments are managed by a MFT team that knows how to handle news, noise, and both good and bad market behavior.
Posts about elections and markets
Will the election cause a market crash (2019) Seeing that emotions would be especially high in 2020, this was our attempt to nip election angst in the bud. It includes a brief history of negative campaigning and market behavior around elections.
Should I prepare my portfolio for a post-election drop? (2012) Describes how betting on “patterns” about how various parties holding the presidency or the houses of Congress has been costly in the past.
Which presidential candidates will be good, or bad, for the markets? (2016) Explains how almost every president in modern times saw tough times in the market and the economy, suffering bear markets and recessions.
Assessing the “Trump Bump” – What to Do Now (2017) Describes the futility of market timing and describes differences between how investors and speculators answer fundamental questions about market behavior.
Posts about good plans and making them work
For successful investing, control your intake of news (2012) Most successful investors have learned to focus on what can be controlled. You can control your intake of news or, it can control you. This posts describes five points that can help you take control of your news intake.
Easing stress during uncertain times (2011) How sound financial planning can keep you making good decisions. Memorize the seven guidelines.
Will a stock market correction ruin my financial plan? (2014) Why good plans can make stock market corrections inconsequential and a bear market should be something you can weather.
Making News…
We continue to help the Orlando Sentinel with reader questions by participating in a free call-in hotline and its Ask An Expert feature. Some links require a subscription to view.
Mike Salmon, CFP® answered a question about the tax filing deadline and contributing to a Roth IRA. Charlie Fitzgerald, CFP® gave guidance to a woman deciding between receiving a lump sum payout to her IRA and a monthly check from a pension plan. Derrick Chandler, CFP® discussed how to reduce capital gains taxes when selling a second home.
Dan Moisand,CFP® wrote the cover article of the Journal of Financial Planning‘s June issue. It covered some of the things Dan has learned over the years through many bad market environments and how good financial planning is critical to financial security. “When I see someone made a bad financial decision, I can usually trace the problem back to a lack of a plan, a bad plan, abandoning a good plan, or failing to revise a plan as needed.”
Dan also continues to write for MarketWatch, Florida Today, and Financial Advisor:
I want to take money out of my Roth IRA tax-free — when can I do that?
Should everyone invest in a Roth?
How does dollar-cost averaging protect against losses?
My dad left me his IRA when he died, is there a way to share it with my siblings?
Can I use tax-loss harvesting to offset my required IRA withdrawal?
What should I be doing now with my investments?
Can you help me find a tax-smart way to finance my retirement?
In the News…
Moisand Fitzgerald Tamayo, LLC again made Financial Advisor magazine’s list of America’s top Registered Investment Advisory firms, and was again awarded a top rating and named one of Florida’s 12 Top Financial Advisors and Wealth Managers by independent rating firm Advisor HQ. The Financial Advisor list is based upon assets managed while Advisor HQ‘s uses other qualitative criteria.
Charlie was a source for a special feature on financial literacy produced by Investment News. Charlie was instrumental in a succesful six-year campaign to get public high schools in Florida to offer a financial literacy course as an elective. “As financial planners, we get it,” Fitzgerald said of financial literacy. “We see the benefits of smart money decisions. We see the consequences of bad money decisions. You’ve got to start this education before young people go into the adult world.”
Dan had a few thoughts to share with CNBC about how the coronavirus crisis differs from the Great Recession.
Things We Found of Note