November 5, 2020
Post-Election Update and Market Commentary
The polls for the election are officially closed. However, in keeping with the general theme of 2020, the results are uncertain. As of the writing of this update, it appears the Senate may maintain a slight Republican majority, the House will maintain a Democratic majority, and the Presidency is simply too close to call. It may be several days, or longer, before the final results are in. Indeed, the Pennsylvania attorney general was quoted as saying “It will take as long as it takes.”
To provide some historical context, this would not be the first election where the results were not immediately known. Exactly 20-years ago, the election between George W. Bush and Al Gore was not confirmed until December 12, 2000. This was due to the ongoing Florida recounts and only finalized after a last-minute Supreme Court decision.
The performance of the stock market on election day and the day after has been positive. We do not believe it is appropriate to say that these increases are only due to the election, or that they will continue. However, it is a possible acknowledgement that the stock market is moving past much of the uncertainty caused by the election. Focus may now return to more fundamental analysis and other issues – such as COVID-19, federal stimulus packages, and other governmental policies.
In recognition of the concerns surrounding this election, our advisor team will be hosting a “Post-Election Update” webinar on November 19th at 5:00pm. The advisors will discuss the results of the election and what they may mean. We also want to address specific questions from you. We can’t take live questions during the webinar due to technology constraints, so we invite you to e-mail your questions prior to the webinar to firstname.lastname@example.org. These questions will be shared among the advisor team.