Post-Election Message 2024

Now that the election is over, we can all breathe a collective sigh of relief, knowing that some of the uncertainty is over. Whether or not your candidate won, we now have clarity on the results and the country can focus on moving forward. I wanted to remind you that who is in Washington has less impact on your investment portfolio than you might think.

We looked at data going back to 1926 and found that the stock market tends to perform well, regardless of who is in the White House.

Then, we thought that perhaps control of Congress would have a bigger impact on stock market performance. Again, the data showed us otherwise.

Digging deeper, we expected the White House to influence certain sectors of the economy. Surprisingly, we found that during Obama’s 8 years in office and Trump’s 4 years, the top three performing sectors were exactly the same!

Even more surprising, energy was the worst-performing sector during Trump’s presidency, despite his pro-energy policies. In contrast, energy became the top-performing sector under President Biden, despite his green and clean energy agenda.

This isn’t to say politics don’t matter—they do for many reasons. But it’s a reminder that the stock market is influenced by many factors, and politics has less impact on your investment performance than you might think. Remember, you are investing in great companies, not political leaders. These companies are focused on generating profits for you as their shareholder.

We will continue to monitor the markets, adjust your portfolio as needed, and help you stay on track toward your goals. If you have any questions or would like to discuss this further, feel free to reach out to our office. We are happy to help!

This commentary reflects the personal opinions, viewpoints and analyses of the Seaside Wealth Management, Inc. employees providing such comments, and should not be regarded as a description of advisory services provided by Seaside Wealth Management, Inc. or performance returns of any Seaside Wealth Management, Inc. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Seaside Wealth Management, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.