Matt: Hi everyone, this is Matt Pappas, Vice President – Investment Officer and thanks for joining us today for a quick CG Insights update. Getting (final) clarity on the election results is boosting markets, it definitely did not pay to “wait and see” in getting in/out of the markets until after the election results.
That’s really the same thing as trying to time the market; those of you who follow our posts and updates know that our advice was not to time the market but instead stick to your strategy. It’s really never a good strategy in our opinion, no matter if this time is different or not. The markets were already moving higher before the presidential result were announced, we think because the Senate and House races were more balanced than what people expected.
Tom: And this is Tom Pappas, Managing Director, Investments here. There was fear that a “blue wave” where Democrats picked up a lot of seats in the House, Senate and Presidency combined would cause a lot of aggressive new legislation, specifically higher taxes. But that’s not what happened and in fact it looks like broad tax reform is now off the table for a while; regardless of your political tilt, that’s a good thing for companies and consumers especially with the economy still down. The vote was instead for balance, resolution, progress and less conflict.
More importantly, we’ have great news on potential vaccines, the economic rebound continues and there’s a ton of cash in the system waiting to be deployed. We said in our last video, with the data to support it, that no one party has ever stopped this engine that is the US economy, period. Now the focus is back to what matters (in terms of your money), the economy, interest rates and businesses making money.
Matt: But let’s acknowledge a few things:
1. Our democratic systems works, and is arguably the best out there
2. Our economy functions independent of politics
3. However messy, loud and abrasive, we as a country keep moving forward. The odds are, it will be an American company that provides a vaccine for COVID-19…
We should be celebrating that! There’s a lot to be grateful for, this is an incredible time we’re living in in and even more incredible country!
Thanks for tuning in…
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