The Democrats won the House, the Senate, and the Presidency… What does that mean for your portfolio and markets headed into 2021? Dive in with Financial Advisors, Gabe Lapito and Ryan Gomendi.
How a democratic government will affect the market
Now that Democrats have won the House, Senate, and Presidency, what does that mean for your portfolio and the market going forward in 2021? This is a question we’ve been getting asked a lot lately and is certainly something we want to address. We’ve said all along markets are green, meaning they’re not blue (Democratic) and they’re not red (Republican). Rather, the market is green focusing on what’s happening in the economy and what’s happening within different businesses, not the party in power.
How a stimulus package affects the current market
At this point the market is liking Democratic control, the main reason for that is the anticipation that there could be another stimulus package to pass. We’re seeing many Democrats already calling for that, the market is finding it favorable as we still climb out of this recession that we recently had.
What does it mean for taxes?
Another thought we hear is that people are fearful that as Democrats control everything, taxes will go up. There’s a slim majority Democrats hold in office over Republicans, meaning that it would be really hard at this point to have an extensive tax package posted any time soon. What we will say is that this recent run up in the market has us thinking that a correction is near. However, that isn’t correlated to any political environment, markets go up and markets go down.
If you have any questions feel free to give us a call here at strategic retirement plans, we’re here to help.