The Election and Our Economy: What to expect in 2021… and beyond.

As the November presidential election approaches, many investors wonder what effect the outcome will have on the financial markets and our country’s economy. The COVID19 wildcard has many Americans yearning for financial stability. In a year of unknowns, the potential of yet another shift has many wondering if there are ways to invest with confidence and certainty.

While no one can foresee the future, we may have insight on how the election will impact our economic state.

If President Trump remains in office for another term, we could expect him to stay the course. President Trump is likely to continue to enforce strict tariffs, especially on Chinese imports, emphasizing his commitment to American-made goods and services.

This may, however, increase volatility in the stock market, a fear that has been on many investors’ minds as they observe Trump’s seemingly aggressive and confrontational tactics.

President Trump is also likely to maintain his stance on low taxes and fewer regulations on energy and financial industries. This may result in positive news for large and small businesses alike.

Alternatively, if Joe Biden takes office, we can anticipate a return to economic policies not unlike those implemented by Former President Barack Obama. If elected, Former Vice President Biden will likely lower taxes for middle-class households, reducing income inequality. With democrats in the White House, we’re likely to see an immediate, albeit short-lived, economic stimulus, as well as increased social security benefits and more comprehensive healthcare coverage.

In either case, both Trump and Biden will likely continue to allocate federal funding towards infrastructure spending. That said, Biden is far more likely to favor environmentally-friendly infrastructure.

In summation, if history has taught us anything, it’s that contrary to popular belief, election years are no less volatile than any other year. That said, we do tend to see heightened economic turbulence during the months of October and November–election months.

Regardless of your political views, investors and economists know that real financial players focus on their long game. Thus, you can rest assured that with careful planning and appropriate guidance, we’ll be able to help you weather this storm too.