SAN ANTONIO — The election is far from over. While President-elect Joe Biden is moving ahead with his transition to the White House, the Trump administration has yet to concede. As uncertainty lingers over the presidential transition of power, you may be tempted to change your investment strategy.
KENS 5 spoke with Karl Eggerss, senior wealth advisor and partner of Covenant, who shared his recommendations. He breaks down what factors in the economy would have been the same with either presidential candidate.
“Both candidates had an economy that was recovering. Both candidates would have likely gotten some stimulus package,” he explained. “The other thing is that the federal reserve has already told us they’re going to keep interest rates at 0% for at least the next couple of years. That would have happened at either presidency.”
Eggerss said rather than focusing on the impact of the presidency, investors should look at the impact of COVID-19.
“The biggest change for the stock market (over) the last nine months or so has really been about what stocks benefit in a COVID environment, and what stocks don’t benefit,” he said. “When you look at what each candidate was trying to do, the market was already pricing it in. It's very important for viewers to not just predict what’s going to happen in the future, but realize what’s already priced into the market."
Eggerss advises to stay the course and not to deviate from your personal financial goals.
“Regardless of the news, regardless of what you think is going to happen, don’t predict what you think is going to happen," he said. "Actually have an investment portfolio that focuses on your own financial goals and stay invested for the long term, because we have had so many different news events this year that could have really gotten you off track."