Biden Inauguration Day
Market Update - January 20, 2021 - Written by Skybound Wealth Management
What Does This Mean for Investors?
Today Donald Trump leaves the White House for the last time as Joe Biden is sworn in as US president at the official inauguration ceremony.
Against a backdrop of civil unrest, there are many questions being asked about what today means for markets. As you can see from the chart below, markets have always recovered on the back of newly elected US Presidents as well as events such as the Global Credit Crisis of 2007 and the COVID-19 Pandemic before rallying and going on to reach new highs.
Changes in political leadership are just one of an almost infinite number of things that influence stock markets, many of which are uncertain. That’s why we don’t try to predict what they’ll do next.
Instead, we believe having a diversified portfolio, investing across a broad range of asset classes, regions and industries, is the best way to prepare for whatever the markets have in store.
It doesn’t guarantee your portfolio will be immune from every short-term shock, but over the long-term, it should allow you to capture market gains in the good times, and provide some protection if things turn sour.
Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Consult with a qualified financial adviser before implementing any strategy discussed herein. Past performance is not indicative of future returns. See disclosure information on profile.