Spotlight: Seven Considerations For Market Volatility
Navigating Uncertainty: How to Stay Calm During an Election Year
Presidential elections can be uniquely unsettling. Candidates campaign with different views of the future, with pundits forecasting policy and regulatory changes. Adding to the uncertainty of our own election outcomes this year, 40% of the world’s population will head to the polls to vote in 2024. With these impending changes, you may be tempted to pullback or postpone critical decisions into the future. However, following through on these impulses may not be in your best interest.
Investors tend to prefer certainty and go out of their way to avoid risk—even when it may not be advantageous. Look to the past for reassurance. Historically, stocks tend to perform well in election years. While there may be volatility around Election Day, the events themselves have minimal influence on financial markets in long term.
Markets tend to rally as uncertainty fades, and it is important to focus on what you can control. Revisit your risk preferences and investment allocations. Investigate the potential for tax savings in your entire balance sheet to maximize the opportunity. Ensure that your needs and desires are taken care of, regardless of market performance. Work closely with your professional advisors to maintain balance in turbulent times.
We can help. As Richard Madigan, J.P. Morgan Private Bank’s Chief Investment Officer, reminds us, “successful investing focuses on policy, not politics.” Set and prioritize goals, focus on what you can control, and maintain a long-term perspective. Your J.P. Morgan team is ready to help guide you toward the future you envision.
Rick Barragan is the Managing Director,
Los Angeles Market Manager, for J.P. Morgan Private Bank.
[email protected] | (310) 860-3658
privatebank.jpmorgan.com/los-angeles
Source: J.P. Morgan Private Bank, Sept. 16, 2024, Navigating uncertainty: How to stay calm in election years, by Deepti Nagulapally, Behavioral Science, Advice Lab, J.P. Morgan Private Bank.
