I hope that this message finds you in good health and well-being. We turn another page on an eventful election year and the results are in. This month’s update includes some thoughts about these results as it pertains to investing and Long-Term Care Awareness.
The United States presidential election on November 5th has left investors pondering its impact on their portfolios. While most voters focus on current issues when casting their ballots, stock investors tend to concentrate on how the election might influence future economic growth. Historically, the S&P 500 Index has averaged a 10.7% total return in the year following a presidential election since 1928 regardless of which party controls the white house. Keeping the big picture in mind can help you stay focused on your long-term goals.
Although election results historically do not move the needle on long-term stock returns, the outcome of U.S. elections can significantly impact various sectors and industries. Analysts at First Trust have identified specific market areas they believe may offer strong relative value and growth potential under the new administration, including:
Aerospace & Defense
Energy
Financials
Semiconductors
U.S. Revenue
This data is not lost on your investment managers, and I suspect that they will be making allocation changes as they see the best fit for what is to come. Markets and corporations tend to sort themselves out after elections, with new winners and losers emerging when there are residential and or congressional leadership changes. Please reach out if you would like to customize your portfolio with an allocation to an investment that includes these specific sectors.
November is Long-term Care Awareness Month. Over the last year many of our clients have worked with us on this important planning consideration. If you haven’t considered this yet or put this on hold for the time being, then let’s regroup and add it to the top of your planning goals for 2025. Linked below is the National Association of Insurance Commissioners Shoppers Guide to Long Term Care Insurance (LTCI.) This guide will really help you become more acquainted with the ins-and-outs of LTCI.
Next month we will provide some thoughts on the planning considerations that we would like to raise with you in 2025 regarding potential tax changes, estate planning and hear what may be important to you. In the meantime, all of us here at IIPS would like to wish you and your loved ones a Happy Thanksgiving! Thank you for your business and trust in our firm to provide financial planning and investment management services for you, your family and businesses.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.