Election day is Tuesday, November 5, and the uncertainty could be a pitfall for investors.
“There’s a lot of emotion involved,” says Dan Lefkowitz, a Morningstar Index strategist and co-host of the podcast “The Long View.” “It’s also very hard to predict what policies will be enacted as a result of the election and how the markets will react.”
While investors’ instinct may be to rush and prepare for such a development, that’s not always the best course of action.
Dan Kemp, global chief investment officer at Morningstar Investment Management, explains:
When faced with uncertainty, investors may seek out narratives that predict the future and alter their portfolios accordingly. This can cause asset price volatility and risk investors being tossed around as prices spike in one direction, then another.
Therefore, it’s important to remember the old investing adage: “Don’t just do something, be in it.” The most important thing an investor can do is stick to a plan and avoid reacting.
Dan Kemp, global chief investment officer at Morningstar Investment Management
That said, the outcome of the election could have policy implications for investors and their funds in the long term, including on retirement-related issues such as Social Security solvency, the availability of environmental, social and governance funds in employer-sponsored retirement plans, health care costs, the future of Medicare, and taxation.
We’ve compiled some insights that shed light on what a new administration means for investors. We’ll be adding to this collection as the election approaches, so bookmark it for the latest updates.
Election Insights
Oil and Water: How to Invest in an Election Year
An evidence-based approach, rather than a focus on politics, has proven its value.
3 cognitive biases to avoid when preparing for the 2024 election
Making decisions in an election year.
The 2024 Election and Your Portfolio
What should you do with your portfolio ahead of the election? The short answer is probably nothing, or at least nothing that depends on who you think will win. The key driver of your portfolio should be your timeline and goals, not who is in the White House.
The stock market has risen and fallen under every president, but the path of least resistance has always gone up.
Danny Noonan, investment writer, Morningstar Investment Management
Still, it’s natural for investors to have questions about potential opportunities and risks that may emerge this year. Our analysts share their insights on how you should think about factors that may affect your investments.
The 2024 Election and Your Portfolio
Global Election Outlook
Outside the United States, elections in a number of countries around the world, including the United Kingdom, France and India, are raising questions about potential changes to economic and fiscal policy.
We’ve compiled the views of our colleagues around the world on the elections and how they might affect the markets.
Insights into Global Elections
From the Morning Star Archive
2024 isn’t the first election to raise investor concerns about market volatility.
Our analysts have been researching the volatility and potential impact of presidential elections for years, and while each election brings its own unique risks, every election cycle raises some concerns, meaning much of the advice from years past still applies.
Below, we discuss some points from past presidential elections that still apply in 2024.
