From there, you can establish a plan that helps you meet your immediate and long-term goals. That could entail:
- Delving into market segments that are currently missing from your portfolio
- Buying up value stocks
- Focusing on growth stocks
- Loading up on dividend stocks
- Playing it somewhat safe by putting your money into index funds, which offer instant diversification
Of course, keep in mind that the election season and stock market volatility tend to go hand in hand. If you buy stocks now, expect their value to fluctuate between now and early November — but don’t panic if your investments initially lose money, or do so after the election. The stock market has a strong history of recovering from downturns both major and minor. If you pledge to leave your portfolio intact when stock values decline, you’ll avoid losses.
Will stock values fall after the election?
You may think that the stock market will tank following the election. However, without a crystal ball, it’s impossible to know what impact the results will have. If there is a market downturn, you’ll have another opportunity to buy stocks at a discount, but don’t hold off on investing today because of that potential scenario.