We’re less than a month away from the election. I am ready for it to be over. I’m still hearing rhetoric about how one candidate will or will not affect our pocketbooks. A study of past elections tells us to not make any major financial decisions based on election anxiety or ‘predictions’.

A survey by online investing platform Betterment’s indicates that more than half of American investors are feeling anxious about how the impending presidential election could affect their investments. Astounding to me is that 40% expect to move or pull some of their investments based on who is elected. Getting emotional could damage your portfolio.

Don’t make financial decisions based on candidate’s campaign promises.  Politicians are full of promises. Very little of what is promised ever becomes an actual policy change. At this point in time, we do not know whether those with wealth exceeding 100mm will pay taxes on unrealized gains, nor do we know whether there will be tariffs of up to 60% placed on goods from certain countries.

Elections create uncertainty in the markets. That often translates to volatility surrounding the election. But that does not mean that the markets will trend lower because of one candidate or another. Once a president is elected – the majority of the time the market rallies because we now know who will be president. 

Follow your investment plan. Separate fact from fiction. Don’t make investment decisions on counjecture or ‘suspected’ market movement.  Do not reevaluate your investment allocation based on the election, base it on your specific needs and goals.

Identify what stresses you – and evaluate changes you may make because of those stressors. Most of the time, leave it alone.