Midterm Elections – ECS Capital Investments

Registered Representative of and securities offered through Berthel Fisher & Company Financial Services, Inc. (BFCFS). Member FINRA/SIPC.

Hello my name is eric sporing and i’m a financial professional and owner of ecs capital investments the midterm elections are less than a month away investing during an election year can be tough on the nerves and the 2022 midterm election promises to be no different politics can bring out strong emotions and biases but investors would be wise to put those aside

When making investment decisions markets can be especially choppy during election years with sediment often changing as quickly as candidates open their mouths with the midterm elections being right around the corner and the prospects of the democrats holding on to their majorities in congress are slim the democrats have a five-seat majority in the house of

Representatives and the senate is split 50 50. in the upcoming midterms 35 seats are up for election 21 currently held by republicans and 14 held by democrats all 435 seats in the house are up for reelection and the realignment and redistrucing process following the 2020 census should favor the republicans not only do the democrats only hold a razor-thin majority

In congress but also history is not on their side the president’s party has lost seats in 17 of 19 midterm elections since world war ii and senate seats in 13 of 19 midterm elections with an average seat loss of 27 seats in the house and three to four seats in the senate additionally midterms are often a referendum on the current administration and the president’s

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Approval ratings are low therefore divided government seems to be the most likely outcome however investors need not panic over divided government as it is the most common political configuration through divided government since world war ii the economy has grown at a 2.7 percent pace on average and market returns were 7.9 percent this underscores a critical point

For investors don’t let how you feel about politics overall how you think about investing voters had a very strong opinion about prior to presidents but the average stock market returns during the trump and obama administrations were nearly identical at 16 percent and 16.3 respectively and well above the average over the last 30 years of 10.6 investors who allowed

Their political opinions to get the better of investment logic may have missed out on above average returns during political administrations they didn’t like don’t allow election predictions and outcomes to influence investment decisions history shows that election results have very little impact on long-term returns expect volatility especially during election

Seasons but don’t fear it see it as a potential opportunity by design elections have clear winners and losers but the real winners are the investors who avoided the temptation to base their decisions around election results and state invested for the long haul if you have any questions don’t hesitate to reach out to me i can be reached at 816-558-6414 thank you and have a great day

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Midterm Elections – ECS Capital Investments By ECS Capital Investments