Financial adviser explains why you may feel stress around election season
ELECTION HAS YOU STRESSED OUT? WELL, ACCORDING TO THE AMERICAN PSYCHOLOGICAL ASSOCIATION, YOU’RE NOT ALONE. THE ELECTION LEADING CAUSE OF STRESS FOR SEVEN IS THE LEADING CAUSE OF STRESS. RATHER, FOR SEVEN OF TEN AMERICANS AND SOME OF IT MAY BE TIED TO YOUR INVESTMENTS. IMAGINE THAT. WEIRD. YEAH. JOINING US LIVE NOW, FINANCIAL ADVISOR AND CAPTRUST VP CATHERINE MCCALL. THANK YOU SO MUCH FOR JOINING US AS NORMAL. OKAY. SO WHAT ARE YOU TELLING CLIENTS RIGHT NOW WHO MIGHT BE FREAKING OUT ABOUT THE ELECTION IN GENERAL IN REGARDS TO THEIR FINANCES? LISTEN, THIS IS A CLASSIC MOMENT. EVERY ELECTION CYCLE WE GET THESE FEELINGS OF FEELING OUT OF CONTROL. I WANT TO MAKE A DECISION. I WANT TO HAVE AN ACTION THAT FEELS VERY POWERFUL TO US. SO SELLING EVERYTHING OUT OF YOUR STOCK PORTFOLIO JUST IN RESPONSE TO MAYBE A LITTLE BIT OF FEAR, A LITTLE BIT OF EMOTIONS. SURE. NEVER THE RIGHT MOVE HASN’T HISTORICALLY WORKED OUT FOR ANYBODY, HAVE THOSE DIAMOND HANDS? I WOULD I WOULD HIGHLY RECOMMEND THAT YOU TAKE THE EMOTIONS OUT OF YOUR PORTFOLIO. I WOULD TAKE THE POLITICS OUT OF YOUR PORTFOLIO BECAUSE WE KNOW HISTORICALLY THAT REGARDLESS OF WHO WINS, THE MARKETS DO WHAT THE MARKETS DO. THE CORRELATION IS NOT THAT HIGH. AND NO. AND THAT’S A GREAT POINT. SO MAYBE PROVIDE US A LITTLE BIT OF CONTEXT ABOUT THE DIFFERENCE BETWEEN DEMOCRATS AND REPUBLICANS AND HOW THE STOCK MARKET PERFORMS HISTORICALLY. YEAH. SO GOING BACK ABOUT 30 YEARS, I THINK WE LOOKED AT ACTUALLY FURTHER BACK THAN THAT, WE LOOKED AT FIVE SIDES, FIVE DEMOCRATS AND FIVE REPUBLICAN PRESIDENTIAL OVERALL STOCK MARKET RETURNS. AND THE NOMINAL DIFFERENCE IS ABOUT HALF A PERCENT BETWEEN DEMOCRATS AND REPUBLICANS IN TERMS OF STOCK MARKET RETURN, MEANING ALL OF THEM HAVE TO GO THROUGH TOUGH MARKETS. ALL OF THEM HAVE TO GO THROUGH GREAT MARKETS. DOES NOT REALLY CORRELATE. ELECTION YEARS TEND TO BE POSITIVE. ABOUT 83% OF THE TIME. THEY ARE POSITIVE WITH AN AVERAGE RATE OF RETURN OF ABOUT 11% ON THE S&P 500. SO WE’RE ALREADY UP FOR THE YEAR. THAT’S A POSITIVE THING. WE’D ACTUALLY HAVE TO GO BACKWARD QUITE A BIT FOR THIS YEAR TO STAY RIGHT IN LINE WITH THE AVERAGE. WE KNOW THAT WE LIKE GRIDLOCK. THE MARKET ENJOYS GRIDLOCK. SO THAT MEANS THAT IF YOU HAVE A MIXED BAG IN TERMS OF ELECTION OUTCOME, OBVIOUSLY WE HAVE TO HAVE AN ELECTION OUTCOME. BUT IN TERMS OF CONGRESS AND THE WHITE HOUSE, THE MARKET TENDS TO LIKE THAT. AND AFTER AN ELECTION, YOU TEND TO HAVE A LITTLE BIT OF HAPPINESS, A LITTLE JUBILANCE, BECAUSE THE MARKET TENDS TO KNOW, OKAY, THERE’S CLARITY, WE HAVE AN ANSWER ABOUT WHO’S GOING TO BE IN CHARGE, WHAT SPENDING MIGHT LOOK LIKE, AN IDEA ABOUT WHAT LEGISLATION COULD BE ON THE HORIZON, AND THAT CLARITY IS WHAT THE MARKET REALLY CRAVES. AND IT’S PROBABLY JUST BECAUSE OF THAT ASPECT OF IT. YOU KNOW, SOME PEOPLE MAY BE PUTTING ALL THEIR EGGS IN ONE BASKET. AND AS YOU ALWAYS SAY, DON’T DO THAT. DIVERSIFICATION IS KEY. STAY OUT. KEEP THE EMOTIONS OUT OF THE EQUATION. GO BACK TO YOUR FINANCIAL PLAN AND MAKE SURE THAT YOU’RE DIVERSIFIED AS YOU GO THROUGH THIS BOTTOM LINE RIGHT THERE. ALL RIGHT CATHERINE, THANK YOU SO MUCH FOR YOUR TIME.
Financial adviser explains why you may feel stress around election season
Updated: 1:40 PM PDT Oct 30, 2024
If the upcoming election has you stressed out, you’re not alone.According to the American Psychological Association, the election is the leading cause of stress for seven in 10 Americans.Financial advisor and Captrust Vice President Kathryn McCall joined the KCRA 3 News morning show on My58 and said some of that stress may be tied to your investments.For more information about the November election, including key issues and other races on the ballot, check out the KCRA 3 Voter Guide.Find more political news from our national team here.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter
If the upcoming election has you stressed out, you’re not alone.
According to the American Psychological Association, the election is the leading cause of stress for seven in 10 Americans.
Financial advisor and Captrust Vice President Kathryn McCall joined the KCRA 3 News morning show on My58 and said some of that stress may be tied to your investments.
For more information about the November election, including key issues and other races on the ballot, check out the KCRA 3 Voter Guide.
Find more political news from our national team here.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter
