Retirement Wealth Advisors
JULY/AUGUST 2016
| TAMPA BAY MAGAZINE 67
My initial answer to this question
reminds me of a different time
period. It was over 20 years ago.
Back then I was not on many TV or Radio
shows, unlike today. Back in 1995, I was
speaking at many investment workshops.
Discussing the complexity of the financial
or retirement planning business - I would
explain by saying: “Religion, Politics,
Personal Finance……and the verdict of this
god awful OJ Simson murder trial. These
are the 4 biggest debatable topics today!”
Opening statements on this trial were
heard in January 1995.
Today, everyone wants to know: what
will the Presidential Elections do to the
stock market? You can make statistics say
whatever you want. I’m pretty sure it was
Mark Twain who said, “ There are 3 types
of lies…….. (1) Lies, (2) Damn lies, and….
(3) statistics! We believe this is especially
true for the loads of data surrounding
presidential elections. It’s possible to use
the data to say two different things about
the economy, depending on the point you’re
trying to make.
For example, one analyst reported that
since 1929, the S&P 500 gained an average
of 1.58 percent in a president’s first year
in office. Another claimed that since 1928,
the first year of a new presidential term
sees “the markets” rise by an average of 6
percent.
The important thing to remember is
that investing is personal. Trying to predict
markets based on the prices, interest rates
or presidential elections is not a sound
long-term strategy. If it was, more people
would be successful at doing it. Remember
that investing involves risk, including the
potential loss of principal. This election
year promises to have even more fireworks
than usual, but don’t let national matters
distract from your personal long-term
financial goals. Take a look at what
different analysts say about the markets
and elections.
“What Investors Need to Know About
the 2016 Election,” from Oppenheimer
Funds, Jan. 8, 2016 and “How Do Stock
Markets Perform during a Presidential
Election Year?” from Yahoo Finance, April
1, 2016.Google these, and you will get a
clearer picture.
If there’s one thing that is for sure, it’s
that a presidential election year creates
more market uncertainly than non-election
years. For example, if the next president
successfully repeals the Affordable Care
Act, the health care industry would be
poised for changes.
Here’s another way to say it: “How
the Presidential Election Will Affect the
Stock Market,” from Kiplinger, February
2016. At least one analyst has considered
how a Donald Trump administration
would impact the markets, ranging from
higher import tariffs, which would make
some products more expensive, to lower
income taxes, which could prompt higher
household spending in the consumer
discretionary sector. At the end of the day,
remember that dozens of factors impact the
performance of the markets -- and investors
have absolutely no control over them.
What’s important is that you stay focused
on your long-term financial strategy with
regard to whether it’s on track to meet your
retirement goals.
Ok, just in case you can’t sleep
tonight…….here’s one more for ya! “How
would a Donald Trump presidency affect
the stock market?” from Los Angeles Times,
March 7, 2016.
The Holland Group, Retirement Wealth
Advisors is an independent firm helping pre
retirees and retirees create investment, tax
reduction, and estate planning strategies
using a variety of defensive techniques
to custom fit their families needs and
objectives. We invite you to call us……come
meet us and see why hundreds of Tampa
Bay families have chosen The Holland
Group as their financial partner helping
them to retire successfully.
*This material has been prepared for our firm
and contains general information to help you
understand basic financial planning strategies
that may help you work toward your financial
goals. Please understand that we cannot make any
promises or guarantees that you will accomplish
such goals. All investments are subject to risk
including the complete loss of principal.
Investment Advisory Services offered through
Mutual Trust Asset Management
Your Financial Architects
www.THEHOLLANDGRP.COM
727.724.3334
2637 McCormick Drive #101
Clearwater, FL 33759
WEALTH MANAGEMENT
How will the STOCK MARKET
react to the Presidential Election?
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