November 3rd is getting closer and closer and people are beginning to cast their votes for the 2020 presidential election. Regardless of who you want to win, not having an election result could be worse for your retirement plan than your favored candidate losing.
Markets prefer certainty.
As has always been true, the stock market prefers certainty over uncertainty, meaning that we need a winner—any winner—in this election to protect us from another market crash.
Each candidate has espoused his own plan for the economy in 2021 and beyond, and either plan, if enacted by Congress, would require careful planning to navigate for all investors. Knowing the way legislation is likely to occur will provide investors a sense of what’s coming and a chance to begin preparing – even taking some steps before the end of calendar year 2020. But if the election result is contested, the influx of uncertainty would make some advance planning impossible and may not bode well for your investments.