A Short-Term Change for the Mid Term?

We talk a lot about how to maintain a long-term view of your investment portfolio.  But, there are times that a short-term view may be appropriate for anticipated changes in your life.  One contributing factor to consider is the upcoming mid-term elections. Leading up to these elections you’ve likely heard there is a chance that leadership within the House of Representatives and Senate could change.  If you believe the results can affect the current market and economic growth we’ve seen, then you may be concerned.

Does this change warrant a short-term investment strategy change?

Typically, with a long-term investment view the upcoming elections would not warrant a significant change in your strategy.  However, if you find yourself anticipating changes such as upcoming retirement, a recent retirement, or an upcoming change that affects your income you may consider making a short-term shift in your investment strategy.

What This Means:

Consider the strong gains we have seen over the past couple of years.  In retirement accounts where the gains aren’t realized for tax consequences you could change a portion of your allocation leading up to the elections.  Then if the results seem favorable for continued growth you can always change those allocations back to be fully invested.

As you follow along with current events realize that if you need to make short term changes due to upcoming events in your life this is reasonable to consider.  An advisor can help discuss the merit of your concern and what changes to consider.

Wondering how this affects your investments? Schedule a call with Michelle and Steve to discuss your portfolio today.