1. Financial Planning Basics: The Biden Presidency and the Market, Ep #35 Gabe Nelson 15:32

Ever since the election, many people have been wondering how the Biden presidency would affect the market. In this introduction to financial planning basics, I peel back the curtain so that you can see how the Biden presidency could affect the markets. Of course, I don’t offer any advice; I simply want you to have a greater understanding of how different industries may be affected by the change in government. Press play to learn what you should be doing with your portfolio now that the Democrats are in control of the country. 

You will want to hear this episode if you are interested in…

  • How the presidency affects the market [3:22]
  • The roaring twenties [7:15]
  • How the vaccine will affect the economy [10:20]

Does the market care who the president is?

The stock market is a force of its own. It isn’t controlled by the president or Congress, so it really doesn’t matter who is in charge of the country. The market moves by its own set of rules.

This may be as much as a surprise to you as it was for me, but the statistics have shown that the stock market has performed better when the Democrats have been in the White House. 

Historically, the market is optimistic regardless of who is running the country. 70% of the time the stock market rises. There are bouts of volatility the other 30% of the time, but typically the market forges ahead. Have you been worried about the market’s reaction to the Biden presidency?

How is the market changing with the democrats in control?

With Biden and the Democrats in charge of the country, there are signs that there will be little regulation of the technology industry. Infrastructure will increase and trade will kick back up. Green energy should see a boom while the fossil fuel industry will start slowing down. 

Additionally, the money from the stimulus packages of the past year has led to an increase in discretionary spending and since people have been stuck at home for a year they are ready to travel. What market changes do you expect from the change in leadership? Do you plan to change anything in your portfolio?

Should you make any changes to your portfolio?

Many people question whether they should be making changes to their portfolios based on the results of the election. The short answer is, no! As long as you maintain a diversified portfolio that you rebalance periodically you shouldn’t make any changes to your investment strategy based on which party is in office. It is important to remember to rebalance regularly to keep your asset allocations in line with your investment strategy.

When is the last time you rebalanced your portfolio? Do you have a system in place that helps you remember to do so?

Sometimes two heads are better than one

Do you feel like you need an extra set of eyes to assess your portfolio? Would you like me to check your financial plan? If so, head on over to my website and click on the Start Here button to schedule an initial 15-minute conversation to see if I would be a good fit to help you out. You may be interested in a one-time consultation or a long-term arrangement. Either way, I would be happy to help you reach your financial goals.

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Gabe Nelson Host - Solopreneur Money Podcast

I specialize in advising self-employed professionals and solopreneurs because I’m as excited about my clients’ dreams as they are and always strive to provide realistic and unbiased advice, and straightforward answers.

Back in 2008, I founded Gabe Nelson Financial, Inc. to provide independent, objective financial planning advice to individuals, families, and businesses, specializing in comprehensive financial planning with a holistic financial approach.