Commerce Will Continue

One of the most frequent questions I get during an election year is some form of, Should I be making any changes to my investments based upon how the election might be decided? I also can count on talking half of my clients out of making big changes to their investment portfolio in November because their preferred presidential candidate didn’t win. Of course, I won’t know which half until after the election. Many people convince themselves that the stock market cannot possibly do well if (Insert Name) wins.

While I do not claim to be - nor would I want to be - a political prognosticator, I can make one prediction with certainty. After the election: commerce will continue. On November 6, if you drive by a Walmart, there will be cars in the parking lot. I’ve never known anyone to go to Walmart to just look around. If you’re going to Walmart, it’s usually to buy something. If you are a Netflix subscriber, I feel relatively certain that you will not cancel your subscription on November 6. If Amazon is showing up at your house on November 5, I feel pretty sure they will keep showing up in the days, weeks, months after the election is over.

The logic in assuming commerce will continue is pretty straightforward. It’s the same reason that recessions don’t last forever. We can all put off purchases up to a point, but it’s hard to put them off forever. Eventually vehicles must be replaced. Heaters, air conditioners, and other items you need for your house don’t last forever. Eventually businesses must replace their computers, equipment and other office supplies.

If you put off buying a new house, you will still probably go to Lowe’s or Home Depot and buy things to fix up your current house. If you put off buying a new car, you probably will still go to AutoZone or somewhere else to purchase replacement parts for the vehicle. If you don’t go out to eat as much, you still are probably going to Kroger or Publix and buying groceries.

In today's interconnected global economy, businesses adapt to changing circumstances by shifting their strategies to navigate challenges and seize opportunities. Consumer demand may ebb and flow, but it rarely grinds to a complete halt. Even during periods of uncertainty, individuals and businesses find ways to meet their needs and pursue their aspirations. In the long run, it is not a winning strategy to bet against this.

While any current events, elections or otherwise have the potential to disrupt financial markets in the short-term, it’s difficult for them to have a long-term effect on overall commerce. Don’t miss out on any benefits of that just because the election does or doesn’t go your way. Commerce will continue.

Any opinions are those of Southern Springs Capital Group and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification. Individual investor's results will vary. Past performance does not guarantee future results. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions.

As Financial Advisors of Raymond James, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Southern Springs Capital Group is not a registered broker/dealer and is independent of Raymond James Financial Services.

David Jackson, MBA, CFP®, C(K)P™, is the Managing Partner at the Southern Springs Capital Group. For more information on Southern Springs Capital Group, visit www.southernspringscapital.com. Our offices are located at 2555 Meridian Boulevard in Franklin. We can be reached at 615-905-4585.