"The Democrats are the party that says government will make you smarter, taller, richer, and remove the crabgrass on your lawn. The Republicans are the party that says government doesn't work and then they get elected and prove it." -- P. J. O'Rourke
A lot has changed in the US over the past decade, especially since Obama’s second term. The divide is evident across various aspects of society. Reading CNN and Fox News can feel like observing two different countries.
Each side often opposes the other, even when beneficial actions or decisions are taken. Additionally, the party winning the presidential election frequently reverses regulations established during the other party's tenure. Many people and businesses prefer not to have one party control the presidency, Senate, and House simultaneously, as it prevents one-sided agendas and slows down significant regulatory changes affecting businesses.
Significant ideological differences are more manageable when parties are compelled to negotiate because different parties control the House and Senate. This seems to be the ideal situation when the country is so divided. However, if Trump wins the upcoming presidential election, there is a strong possibility that Republicans could gain complete control, potentially leading to significant shifts.
Only time will reveal the impact on our economy and stock market. In 2016, similar fears existed about Trump's election, yet the market thrived unexpectedly.
The stock market is complex, making predictions challenging. As a long-term investor, I remain invested. I've balanced my portfolio after a strong market performance in 2024. Beyond that, I plan to stay the course and buy more stocks if the market declines.
The most significant short-term risk is whether we will get an election result that both parties will accept in the next day or two after polling or whether it will drag on for several months, further dividing the country and creating a significant short-term uncertainly for people, businesses, and the stock market. There is no way to predict!
Elections tend to have limited, if any, long-lasting impact on markets. Deutsche Bank AG strategists led by Jim Reid noted that 13 of the last 15 US presidents have overseen annualized stock returns of between 10% and 17% during their terms, regardless of their party affiliations. A November victory for Donald Trump would be more beneficial for investors holding stocks and Bitcoin relative to his Democratic opponent, while a Kamala Harris presidency would bring slightly more relief to housing costs, according to the latest Bloomberg survey.
"The Democrats are the party that says government will make you smarter, taller, richer, and remove the crabgrass on your lawn. The Republicans are the party that says government doesn't work and then they get elected and prove it." -- P. J. O'Rourke
My two cents:
A lot has changed in the US over the past decade, especially since Obama’s second term. The divide is evident across various aspects of society. Reading CNN and Fox News can feel like observing two different countries.
Each side often opposes the other, even when beneficial actions or decisions are taken. Additionally, the party winning the presidential election frequently reverses regulations established during the other party's tenure. Many people and businesses prefer not to have one party control the presidency, Senate, and House simultaneously, as it prevents one-sided agendas and slows down significant regulatory changes affecting businesses.
Significant ideological differences are more manageable when parties are compelled to negotiate because different parties control the House and Senate. This seems to be the ideal situation when the country is so divided. However, if Trump wins the upcoming presidential election, there is a strong possibility that Republicans could gain complete control, potentially leading to significant shifts.
Only time will reveal the impact on our economy and stock market. In 2016, similar fears existed about Trump's election, yet the market thrived unexpectedly.
The stock market is complex, making predictions challenging. As a long-term investor, I remain invested. I've balanced my portfolio after a strong market performance in 2024. Beyond that, I plan to stay the course and buy more stocks if the market declines.
The most significant short-term risk is whether we will get an election result that both parties will accept in the next day or two after polling or whether it will drag on for several months, further dividing the country and creating a significant short-term uncertainly for people, businesses, and the stock market. There is no way to predict!
Bloomberg:
Elections tend to have limited, if any, long-lasting impact on markets. Deutsche Bank AG strategists led by Jim Reid noted that 13 of the last 15 US presidents have overseen annualized stock returns of between 10% and 17% during their terms, regardless of their party affiliations. A November victory for Donald Trump would be more beneficial for investors holding stocks and Bitcoin relative to his Democratic opponent, while a Kamala Harris presidency would bring slightly more relief to housing costs, according to the latest Bloomberg survey.