What the 2020 election means for you and your money

With the U.S. presidential election results finally settled, many investors are wondering how a Biden presidency may affect their portfolios next year and beyond. If the special elections in Georgia in January restore control of the Senate to the Democrats, there is a possibility that President Biden may fulfill his campaign promise to raise capital gains taxes and income and estate taxes on wealthy Americans. But the chances of all Democrats falling in line to support these hikes is unlikely while the economy is still struggling. Of far greater importance is the timing and extent of the next round of economic stimulus. Congress and the new president will need to quickly agree on a package that provides relief for the millions of Americans still out of work and for small businesses that are struggling to survive. Wall Street is already betting that the widespread availability of COVID-19 vaccinations by spring, in combination with stimulus and low interest rates, will accelerate economic growth and job creation in the second half of 2021, which is why the stock market has hit record highs recently. Yet, with so much uncertainty in the air, you should think carefully before making any major end-of-year investment decisions or discuss your concerns with an experienced fiduciary financial advisor before you act.