ROCHESTER, N.Y. — Financial experts are keeping a close eye on Wall Street as we await the final, official call for the presidential election.
“One of the most constant things we see about financial markets is, you can never predict what will happen tomorrow or next week or next year,” said Brighton Securities Chairman George Conboy.
He’s been getting plenty of inquiries this political season with questions from clients concerned about how the presidential election could play a role in their retirement and other investments.
“In the long run, stock markets react to economic changes, not very much to political changes,” said Conboy.
He’s been analyzing the markets and says things have largely been steady since the election.
“The economy hasn’t changed much and if there are changes, we are not likely to see them until well into 2021. Most investors are best off waiting, acting slowly and acting in their own best interest when they have clear information about what changes are coming.”
Should there be changes, Conboy expects them to be modest.
“The changes we’re likely to see are tax related changes. After all, Joe Biden has said he’s inclined to raise taxes on people with incomes above a certain level,” said Conboy.
He is hearing from clients, wondering if they should make some changes in their investments.
“Although there is some political or policy uncertainty right now, it’s not uncommon for investors to face uncertainty. The most important thing is don’t act on a lack of information,” said Conboy.
Top questions investors are asking, according to Conboy are, will a change in administration affect the oil and energy markets? Will they affect technology markets? Will there be a big change for income tax policy for estate tax policy?
“The answer of course is we don’t know. We have some surmises. But even if there are changes, those changes are likely to be evolutional not revolutionary. We don’t think action in advance of a possible change makes sense for most investors,” said Conboy.
He also says that no matter who is inaugurated:
“The sun’s coming up tomorrow and investors still have to look for long run returns, not what’s going to happen in a day, a week or a month.”