Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you, Brandy. I appreciate it.
Brandy Auterson-Hurst:
So, we all know the presidential election is coming up this year. How do you think that might impact financial markets?
David Nelson:
Well, number one, I think people have a tendency to believe that there’s more impact that it has than it really does, as far as on markets. So, I guess I’ll start with, it’s going to be an additional, another divisive election. The last two have been very much that way. I think this is going to continue to be that way.
Markets like, as crazy as this sounds, basically gridlock. And so, the chart that I brought along today is looking at the global economic policy uncertainty. It’s an index that’s been put together kind of trying to study as far as what moves markets and what doesn’t, and this is 25 years of data. And if we look at the left-hand side, what we find is that the level of uncertainty was nothing like we’re seeing as far as on the right-hand side, which is more current type data.
What this is looking at is a lot of different things. It looks at, as far as the potential change as far as taxes, business decisions, fiscal conditions, and it tries to bring it together to help people make informed decisions as far as, is this a good time to be contemplating investing or not so much? So, we think this chart, again, gives a nice visual for individuals. Again, at the end of the day, gridlock is a pretty good thing overall. And this might be, it’s shaping up certainly as far as from a position of a lot of gridlock, as far as in Washington.
Brandy Auterson-Hurst:
All right. So, is there anything viewers can do with that information you just shared with us when it comes to making their own investment decisions?
David Nelson:
Yeah, I think so. Just remember that the politicians have a lot less impact than what people think as far as on markets. CEOs don’t make decisions based on what politicians are essentially doing.
Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.
Indices mentioned are unmanaged and cannot be invested into directly.