As focus on the 2020 Presidential Election shifts towards how President-Elect Biden will begin filling out his cabinet, we would like to share with you our thoughts on how this historic election will influence our financial decisions and portfolio positioning in 2021 and in the months ahead of us.
There is little question that this year’s election will have effects on certain sectors and industries, tax policy and the government’s posture on health care. But it is also important to keep in mind that statements and edicts made on the campaign trail rarely if ever translate to immediate change in policy. Particularly, in this scenario, where we still have a divided government, we do not predict a rush of new policy that will require drastic portfolio adjustments; but more on that in a bit.
As we have noted several times during the year, the victor of this election would be burdened by crafting and/or improving the government’s response to the crippling Coronavirus pandemic. There will come a time when Healthcare Reform, Tax Policy and Immigration among others will once again be critical issues debated to shape the future of the country. But for now and the next several months, the vast majority of consequential attention in Washington will be paid to getting the Coronavirus contained.
We will always try to put our analysis of macro forces on the economy in the context of how it impacts our clients and investors. With that in mind, we also strive to remind you that the ever changing landscape wrought with challenges and roadblocks must not dictate people’s financial goals; what you wished your portfolios could accomplish for you last year still matters and will continue to guide how your capital is positioned moving forward.
If you are a growth investor, we will urge you to continue to invest in a portfolio that seeks to achieve your growth aspirations and if you are a more conservative investor seeking preservation of capital with added income, then your portfolio will continue to be tailored to favor those outcomes.
With that in mind, here are three central topics that will play a role in our portfolio management through the end of 2020 early into the New Year.
- The Economic Recovery and a New Stimulus
- What a Divided Government Historically Means for Wall Street
- Industry & Sector Winners and Losers of a Biden White House
Please click on the links to read on.
- US Advisory Group