As the midterm elections approach in the next few weeks, we are constantly asked by current and prospective clients what impacts different election scenarios could result in to the financial markets here in the United States. The biggest concerns are around volatility that could drastically impact their retirement savings and the financial health of their investments.
At ARQ Wealth, we are your trusted financial and retirement planning firm located in Scottsdale, AZ and we leverage our decades of experience to help provide you with the peace of mind that you deserve. We wanted to put together a quick guide to what could be expected with various outcomes of the midterms and what you can do to best be prepared with your financial and retirement planning.
Overview of the Upcoming Midterm Elections
As the Democratic party currently holds a slim majority of 5 seats in the House of Representatives and the Senate is a 50 to 50 split, the fact that all 435 House of Representatives seats and 35 Senate seats are up for grabs could be a change in the balance of political power here in the United States as per current polling results.
Following similar historical trends, we know that typically midterm elections are often a referendum on the current administration and usually the party that does not control the White House will gain seats in both the House and the Senate during the midterm elections, so the most likely outcome that history would tell us is that a divided government could be expected.
Our Recommendations Leveraging Decades of Experience as Your Trusted Retirement Planning Firm
Oftentimes the natural reaction is for investors to panic if the party that they favor loses, but we can say that historically speaking, the average annual stock market returns during the Trump and Obama administrations were nearly identical at 16.0% and 16.3%, respectively.
As markets typically do not like the uncertainty leading up to midterm elections, there will historically be higher volatility and then lower returns in the lead up to the actual election. After the fact, the results will provide a clearer picture that historically leads to lower volatility and for markets to settle.
The biggest mistake that we see with investors from our decades of experience is that they panic depending on the outcome of the election and will not make educated or informed decisions with their financial and retirement planning. The best thing that you can do to ensure that you have all the knowledge that you’ll need to make an informed decision is to reach out to a team of experts like ARQ Wealth Advisors to speak with one of our financial and retirement planning specialists for a no-cost no-obligation planning session.
We will sit down with you to go over your current situation and your financial and retirement plans to ensure that we help put you in the best possible position to achieve your retirement goals with a unique strategy tailored just for you and your family.
Don’t Get Overwhelmed by Politics and Their Impacts on the Economy – Reach out to ARQ Wealth Now
With over a 98% client retention rate, we believe that our results speak for themselves. We are here to help you work towards your unique financial and retirement planning goals.
You can click the following link here for a no-cost no-obligation financial planning session or give us a call at (480) 214-9572.