Election 2020: Be Confident. Be Bold. Be Patient

But here’s something that may surprise you. More than 90% of investors say they plan to change their portfolio in the 12 months following the election.¹

How Investors Plan to Respond

Some investors plan to adjust their stock holdings. Meanwhile, others look to rebalance bonds. At the same time, a few expect to increase cash positions, while others consider making “some other financial change.”¹

During each election cycle, it’s common to see surveys that ask investors, “Do you plan to make any changes to your portfolio as a result of the election?” It’s only the confident, bold, and patient investor who answers, “No. I don’t plan any changes.” For guidance on long-term portfolio planning, see our Best Strategies for Long-Term Stock Investments and US Stock Market Outlook & Strategies for 2026.

Why Emotions Often Take Over

Naturally, second-guessing your strategy feels normal especially with an election approaching. Moreover, emotions rise as investors weigh each candidate’s policies and their potential impact on the economy. However, emotional reactions rarely lead to strong long-term results. Instead, successful investors stay focused on their plans.

But this election cycle, challenge yourself to be confident. To be a patient investor who knows that investing involves risks, making decisions based on your goals, time horizon, and risk tolerance. Be the bold investor who knows that sound analysis should drive portfolio decisions, not a knee-jerk reaction to a current event. For retirement-focused investors, reviewing your long-term income plan can also help maintain perspective. Learn more in Financial Advice for Retirement Planning for Florida Retirees.

Frequently Asked Questions (FAQ)

How does an election impact the stock market?

Elections often create short-term market volatility because investors react to policy uncertainty. However, history shows that markets usually stabilize over time. Long-term performance depends more on economic fundamentals than political outcomes.

Should I change my investments during election uncertainty?

Not necessarily. Making changes based on headlines can hurt long-term returns. Instead, focus on your personal goals, time horizon, and risk tolerance. Investing during election uncertainty works best when guided by strategy—not emotion.

Is it safe to invest during an election year?

Yes. While election years can bring market swings, they also present opportunities. Staying invested and following a disciplined plan is often more effective than trying to time the market.

What is the best investment strategy during elections?

The best election year investing strategy is maintaining diversification, rebalancing when needed, and staying aligned with your long-term financial goals. Avoid panic selling and emotional decisions.

Why do investor emotions rise during elections?

Political campaigns increase uncertainty, which triggers fear or overconfidence. This leads many people to second-guess their portfolios. Understanding investor psychology during elections can help you stay calm and avoid costly mistakes.

How can I avoid emotional investing mistakes?

Stick to your financial plan. Review your portfolio only when life changes—not when news cycles change. A disciplined investing strategy protects you from reacting impulsively to short-term market noise.

Does political uncertainty affect long-term investing?

Short-term volatility may increase, but long-term investing during political uncertainty has historically rewarded patient investors. Markets tend to recover, even after major political events.

Should I hold more cash during election volatility?

Holding some cash for emergencies is smart, but increasing cash solely due to election fears may limit growth. Portfolio decisions should be based on financial needs, not political headlines.

How can I stay confident during market volatility?

Focus on your goals, avoid constant news checking, and remember that successful investing requires patience and perspective. Confidence comes from planning—not predicting elections.

^{The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.}