The theme this week on the Retirement Quick Tips Podcast is: Are You Sabotaging Your Investments Because Of Your Political Views?
Today, I’m talking about why the 2022 midterm election results won’t matter much for your portfolio.
I’m recording this episode prior to the midterm election results, so unlike you, I don’t yet know the outcomes because I’m coming to you from the pre-recorded podcast twilight zone.
But I would be willing to bet the stock market reaction to the election results has been pretty muted. And that is especially true in 2022.
With interest rate hikes, a cooling economy, high inflation, the war in Ukraine, and the weird world we still live in post-pandemic, the election is taking a backseat in 2022, at least in terms of how much it matters for your investments and the markets.
Last week, the Federal Reserve raised rates by another .75%, and if you listened to the podcast last week, you know that the Fed decisions carry a lot more weight with your retirement portfolio, than whether Republicans will control the Senate.
It’s important to remember that the stock market is driven primarily by earnings. Strong earnings or profits propel stocks forward. Policy decisions by the government can certainly impact the economy, and that’s certainly happened in 2022. Too much spending and too much money supply thanks to a too easy monetary policy by the Fed last year is a major reason why we’re in the current economic climate that we’re in.
But that’s a short-term issue that will be worked out. Inflation will normalize again, and the economy will start growing again. And when that happens, stocks will continue their upward march. Thankfully, politicians don’t sway the markets all that much in the long-term, which is good news for all of us.
That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.
Subscribe on Apple Podcasts: https://apple.co/2DI2LSP
Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs
Visit the podcast page: https://truenorthra.com/podcast/
Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance