BRIGHTON, Mich. – The turmoil and heated political rhetoric of an election year has put many people on edge, and when that happens, some start to worry about the economy and their investments.
When it comes to this election, should we worry about the winner tanking the stock market?
A look back at historic market records for more than a century shows that under Democrats, the stock market returned an 11% return. As for Republicans, it was also an 11% return.
- 19 Michigan businesses fined for serious coronavirus workplace violations
- Why are indoor bars still closed in Michigan? State’s top health official responds
So for everything presidential candidates do to make the other side cringe, when it comes to money, the winner doesn’t matter as much as people fear.
“People were predicting if Obama got reelected the market would crash,” said Nathan Larsen, of Executive Wealth Management in Brighton. “It didn’t happen. In 2016, a lot of people were predicting if (President Donald) Trump was elected, a crash. It didn’t happen. It went up.”
Larsen said history tells us no single president causes a market crash merely by getting elected. Instead, he said to have a little faith in American business.
“Money finds its way and we’re fortunate to live in a society where we have free market capitalism and our companies are very good at making money,” Larsen said. “Whether there is a Democrat or a Republican, there is a lot of regulation or lower regulation.”
The key to making sure your hard-earned savings aren’t lost in another market dip is to stay calm, plan ahead and adjust your plan. You can do that by working with a good financial planner, especially one who is certified.