How the 2024 Election Could Affect Your Portfolio

Uncertainty around elections can present certain pitfalls for investors.

Dan Kemp, chief research and investment officer for Morningstar, explains:

When investors face uncertainty, they might seek narratives that predict the future and then change their portfolios accordingly. This can lead to volatility in asset prices, risking investors being whipsawed as prices overshoot in one direction and then another.

So it is vital to remember an old investing axiom: “Don’t just do something; stand there.” The most important thing an investor can do is stick to their plan and avoid reacting.

That said, the election’s outcome may have policy ramifications for investors and their money over the long term. This may include retirement-related issues, such as Social Security’s solvency and the availability of environmental, social, and governance funds in employer-sponsored retirement plans, the costs of healthcare, the future of Medicare, and taxation.

We’ve compiled these insights that unpack what a new administration could mean for investors.

The 2024 Election and Your Portfolio

What should you do with your portfolio in response to the election? In short: probably nothing—or at least nothing that depends on the winner. Your time horizon and goals should be your portfolio’s key drivers, not who’s in the White House.

Still, it’s natural for investors to have questions about the potential opportunities and risks that may emerge this year. Our analysts share their insights on how to think about the factors that may influence your investments.

The 2024 Election by Sector and Industry