We work with a broad range of clients to provide comprehensive financial planning, while bringing cooperation, synergy and integrity to every client relationship.
Clients and Friends,
We hope this receives you well and that you enjoyed our last video. In case you missed it, check out the link below to our advisors talking about dealing with Covid-19 and Back-to-School concerns.
Many of you are asking about the upcoming elections and the potential impact on your investments. And while it may seem at times that “this election is different”, Adam Schickling, an economist in Vanguard Investment Strategy Group, sums it up: “While historical performance is not a guarantee of future results, 150 years is a large enough data set to form reasonable future expectations. Discounting historical results under the guise of ‘this time is different’ is falling prey to a classic investing fallacy.” His study analyzed more than 150 years of asset returns to see whether a relationship with electoral events existed. The article is attached for your reference. He concluded that there is a very modest, but statistically insignificant differential in stock market performance during Democratic vs Republican administrations, as well as during election years versus non-election years.
We agree. As trained and experienced advisors, we are unlikely to fall prey to common investment biases. In particular there are a couple of such biases that an untrained investor may experience, as described by Investopedia:
The other topic at top-of-mind for many of you is the resiliency of the stock market and the rationale for the high equity prices. The attached article from Ladenburg Thalmann Asset Management correctly points out two logical reasons for this:
Key Messages Today:
We look forward to speaking with you or “GoTo” meeting with you soon. Be safe, be healthy and be good.
This month's featured audiocast with the Syntegra Private Wealth Group team
For more audiocasts, please check out our Syntegra Speaker Series on the Community page
* Securities America and its representatives do not provide tax advice.