As the 2024 U.S. presidential election approaches, many investors are asking: How could the 2024 U.S. Election impact my financial future?
Political shifts can bring about changes in economic policy, tax laws, and market sentiment—all of which may affect your portfolio and financial goals.
In this blog, Park City Wealth Advisors will dive into the potential economic shifts we could see depending on who wins the 2024 U.S. election according to Bloomberg. We will examine the likely effects on your investment portfolio, the real estate market, and more, along with how strategic planning can help safeguard and grow your wealth through election-driven market changes.
2024 U.S. Election Impact on Investment Portfolios
The 2024 U.S. election impact could bring market swings and uncertainty, tempting investors to make quick changes as policy expectations shift. However, staying focused on long-term goals can help calm the nerves, allowing portfolios to weather temporary turbulence and benefit from the market’s eventual post-election steadiness.
Here’s what we can expect according to the latest Bloomberg Survey:
Stocks are expected to gain under both candidates.
Trump is seen as better for gold and Bitcoin.
Harris is slightly more positive for housing costs.
According to a Bloomberg Markets Live Pulse survey, 38% of 350 respondents believe the market's growth could accelerate within the next year under a Trump presidency, compared to 13% under Harris. Nonetheless, a significant number of investors, nearly half, expect the market to either maintain or gain momentum under Harris, while 59% foresee a similar trend under Trump.
At Park City Wealth Advisors, we provide tailored investment strategies that account for the unique volatility of an election year, helping clients navigate market fluctuations with confidence.
2024 U.S. Election Impact on The Market
The uncertainty surrounding the 2024 U.S. election impact can create volatility, with markets reacting to the anticipation of new policies and their potential implications on growth and profitability. Historically, elections have had a surprisingly limited long-term impact on markets, despite the heightened emotions and uncertainty.
Deutsche Bank strategists, led by Jim Reid, observed that 13 of the last 15 U.S. presidents—regardless of party—oversaw annualized stock returns of 10% to 17% during their terms. The observed consistency may provide some comfort to investors who worry about election outcomes impacting their portfolios.
Additionally, markets often experience a post-election rally as uncertainties ease; during the past eight elections, the S&P 500 rose an average of 6.6% in the six months following Election Day, compared to just a 1.5% gain in the six months prior, according to Bloomberg data. While pre-election jitters are normal, the aftermath tends to favor steady growth.
Megan Horneman, chief investment officer at Verdence Capital Advisors told Bloomberg ,"Market performance has more to do with economic fundamentals and the earnings outlook than it does with who sits in the White House.”
2024 U.S. Election Impact on The Housing Market
The 2024 U.S. election impact could affect the housing market as policies regarding interest rates, tax incentives, and housing regulations are proposed by the candidates.
According to Bloomberg, for hopeful homebuyers, a Harris win is seen as potentially easing borrowing costs. Currently, the average mortgage rate for a 30-year fixed loan sits at 6.54%—its highest since early August, according to Freddie Mac. Survey participants estimate that, by the end of a Harris term, this rate could drop to 5.5%, compared to 5.9% under Trump.
Since mortgage rates closely follow the yield on 10-year Treasuries, this forecast could bring a much-needed sense of relief to buyers who have felt sidelined by recent high borrowing costs. Meanwhile, many sellers with mortgages around 3% have been reluctant to sell, unwilling to assume higher-rate debt. This dynamic, combined with high home prices and rising stock values, has boosted wealth for some, but left others feeling shut out.
At Park City Wealth Advisors, we provide insightful market analysis and tailored strategies to help clients navigate the housing market during the uncertainties of an election year. By staying informed on policy changes and the potential 2024 U.S. Election impact, we guide clients in making informed decisions that align with their financial goals and capitalize on opportunities in a shifting market.
How Park City Wealth Advisors Prepares for 2024 U.S. Election Impact
Our team at Park City Wealth Advisors is dedicated to providing personalized guidance and insights, empowering you to make informed decisions amidst the uncertainty.
Together, we can develop a robust strategy that aligns with your goals and adapts to the changing political landscape, keeping your financial well-being at the forefront.
Contact us today for more information about your financial picture.
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