News of all kinds is constantly coming at us daily and sometimes minute by minute and at a speed that is difficult to keep with. We are always left wondering what to believe and moreover, who to believe. Investors have to wrestle with various issues like what’s going on with our politics, the increase of unemployment rates, to our current health crisis. How can anyone make a sound investment in down times? How can anyone foresee the future so they can make sound decisions for themselves and their families.
Who will Win the Presidency
Will the incumbent president Donald Trump have another shot at the White House or will Vice President Joe Biden beat him at the poles? Are we going to have issues determining who won the presidency right away because of people staying home as a result of Covid19. Will states be able to manage mail in ballots appropriately and in a timely fashion? What about the post office having current issues at the moment where their employees are not being allowed over time and the mail is allowed to stay in bins till the next day?
These are all concerns that investors will think about prior to making any investment.
What kind of Taxes will the New President Impose?
The Trump Administration tax on corporations is 21% while Vice President Biden says he’s going to raise this to 28%. Will the difference impact investors to hold their money and influence the market if a democrat was to be elected? What if the incumbent is elected will the market then stay the same?
It’s not just the President–it’s the Entire Administration
Investors look at who is in the administration prior to gaining or losing confidence in the market. For example, who will Vice President Joe Biden choose as his running mate? Is this person going to be likable by investors? Does she have a history prosecuting people in Wall Street (in the case of Senator Elizabeth Warren).
If Trump remains as president in the next four years how will he handle the Coronavirus pandemic that is affecting our current unemployment rate. Investors need the middle class to thrive in order for them to thrive. If the middle class is staying home and not stimulating the economy with their money–this effects investors as well.
More on the Economy
Real Gross Domestic project (GDP) decreased at an annual rate of 32.9 percent in the second quarter of 2020, This was released by the Bureau of Economic Analysis. Let’s be frank with each other here. The only reason our GDP has fallen this hard is because of the Corona virus and the current health crisis so this is just temporary. However, investors are concerned about the repercussion and outcome that can impact the economy in a negative way for years to come. A few economists say that economic recovery will start happening in the first or second quarter of 2021, but how do they really know? Not even scientists are getting this right half the time.