How the 2024 Election Might Impact Your Investments

The 2024 election is upon us, and it's undoubtedly capturing much of our attention. As an investor, it's crucial to understand how a president's policies can influence businesses, the economy, and ultimately stock market valuations.

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The Key Story

My 2024 Election Prediction and Investing Insights

In this update, I wanted to take a step back and look at the bigger picture of how the presidential election could impact the stock market and how it should influence your investing strategy.

Learning from Warren Buffett

I began by highlighting a clip from Warren Buffett, whom I consider the greatest investor of all time. He's lived through numerous presidencies and offers valuable advice on how politics should—or shouldn't—affect our investing philosophy. Buffett emphasized that investors shouldn't let their political views dictate their investment decisions. History shows that the stock market has gained during both Republican and Democratic administrations.

The Real Drivers of the Stock Market

While presidential policies can have real impacts, the primary drivers of economic growth and stock market valuations are the productivity of businesses and the innovations they bring. Regardless of who's in office, many companies will continue to grow and increase productivity, driving up dividend payments and stock valuations. It's crucial to focus on intelligently investing in businesses that are performing well, rather than letting political emotions sway our decisions.

Analyzing Economic Policies

I conducted a surface-level analysis of both Trump and Harris's economic policies. For Trump, his previous term included tax cuts, deregulation, and the use of tariffs to negotiate trade deals and protect American industries. Potential positive impacts include boosted corporate profits due to lower taxes and deregulation, while negative impacts could arise from tariffs & trade wars causing uncertainty.

For Harris, policies might include tax increases on the wealthy and corporations, continued focus on climate change and green energy, and support for social programs. Positive impacts could benefit sectors like green energy and infrastructure, while negative impacts might include reduced corporate profits due to higher taxes.

Election Predictions and Investing Plan

I also touched on current polls and betting markets, noting that Trump is leading in several battleground states. However, anything can happen in American politics, and the outcome remains uncertain.

Regardless of who wins, it's important to remember that as individuals, we must focus on improving our own situations. Companies like Tesla, Visa, Microsoft, Altria, Exxon Mobil, Berkshire Hathaway, Salesforce, Apple, and Google will continue striving to improve their earnings and businesses in the coming years.

Technological innovations, particularly in AI and related technologies, are ongoing and present significant investment opportunities. I've oriented much of my portfolio to ride this wave of advancements, and I'm optimistic about the future.

Final Thoughts

In these divisive times, it's essential to keep a clear head and not let politics derail our investment strategies. By focusing on the fundamentals and investing in strong businesses, we can navigate the uncertainties of the election and continue building wealth.

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Thanks for the read! Let me know what you thought by replying back to this email.

— Zach

Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter