Navigating the Financial Impacts of the 2024 Election: Insights from J.P. Morgan Wealth Management

2024 Election: What Could It Mean for Your Finances and Investments?

As the 2024 presidential campaign heats up, many Americans are wondering how the outcome of the election could impact their finances and investments. To shed some light on this topic, J.P. Morgan Wealth Management recently hosted a webcast discussing the possible financial implications of the election.

During the webcast, Executive Director and Global Investment Strategist at J.P. Morgan, Shawn Snyder, addressed some common misconceptions about how financial markets react to presidential races. Contrary to popular belief, the stock market does not necessarily crash if a particular candidate wins. In fact, stocks tend to rally after the election as uncertainty dissipates.

While the winner of the presidential race does have some influence over the stock market, the impact is often felt at the sector level. Financial stocks typically outperform ahead of elections, while sectors like healthcare and energy may see boosts depending on the party in power.

Looking back at the past two elections, we can see how different sectors performed under Trump and Biden’s presidencies. However, it’s important to note that other factors, such as positive vaccine news, can also influence market performance.

In addition to sector-specific impacts, the expiration of the Tax Cuts and Jobs Act of 2017 in 2025 could lead to higher taxes for most U.S. households. The shape of the tax code moving forward will depend on the outcome of the election and congressional results.

Tariffs, climate and energy policy, and defense spending are other areas where the major presidential candidates hold differing viewpoints. These policies can have significant effects on economic growth and specific sectors or companies.

Despite the potential impacts of the election on finances and investments, it’s important not to let emotions drive decision-making. Creating a solid financial plan and revisiting it periodically is key to navigating the uncertainty of election season.

While there may be volatility leading up to Election Day, historical data suggests that election outcomes have not driven long-term market outcomes. By staying informed and sticking to a long-term financial strategy, investors can weather the storm of election season with confidence.