I’m an Investor: 2 Reasons I’m Concerned About My Stocks If Harris Wins the 2024 Election
Written by
Laura Beck
Edited by
Levi Leidy
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The 2024 election is quickly approaching and investors are watching it with a close eye. After all, the outcome could potentially affect the stock market and that’s their bread and butter. If you have money in stocks and are curious about which way the wind is going to blow, we have some answers. GOBankingRates spoke with investors to find out what they’re thinking when it comes to the new occupant of the White House – specifically their concerns.
Here’s why investors are concerned about their stocks if Kamala Harris wins the 2024 election.
The Big Picture: Market Resilience
The stock market has shown remarkable resilience over the years, regardless of who’s in the Oval Office. As Brandon Galici, CFP and founder of Galici Financial, pointed out, “The stock market has historically trended upward, regardless of party affiliation. Whether a Democrat or Republican occupies the White House, the long-term trend of the stock market has been positive. This is because numerous factors beyond presidential control influence market performance.”
Corporate Tax Changes: A Balancing Act
One of Harris’ key proposals is increasing the corporate tax rate from 21% to 28%. While this might sound alarming to some investors, Anthony DeLuca, CFP and expert from Annuity.org, had some thoughts: “At a time where we need inflation to remain level for the Federal Reserve Board to cut the federal funds rate starting in September and through 2025, raising taxes and more government spending is not the answer.”
However, DeLuca also shared that Harris plans to “forgive student loans, offer a child tax credit, cap landlord rates, reduce down payments on homes and cut price gouging on companies who earn over a certain revenue.” These measures would put more money in Americans’ pockets, potentially boosting the economy.
Tariffs and Trade
Harris will most likely continue some of the tariff policies implemented by previous administrations. While the idea is to boost domestic production, these policies might have mixed effects on the market. DeLuca explained, “Imported goods are cheaper and help with the trendline [of reducing inflation].” Specifically, investors are keeping an eye on how Harris navigates international trade relationships.
The Final Word
While a Harris victory could bring some changes to the economic landscape, the fundamentals of smart investing remain the same. Diversification, long-term thinking and staying informed about both policy changes and broader economic trends will be key.
As Craig Goodliffe, CEO and founder of Cyberbacker, shared, “Voting for Harris means we’re probably going to see a really strong economy because she’s making sure that businesses bear most of the tax burden and alleviate it from the middle class. This is going to put a lot more money in the average person’s pocket.”
Of course, the most important thing is to remember that while elections might cause short-term market volatility, they’re just one small factor in the very complicated word of investing. Speak to experts, keep your eye on the market and gauge your own relationship to risk when determining your next moves.
As Galici pointed out, “Making dramatic changes to your investment strategy solely because of who wins the presidency is not a wise move. Your financial plan should be robust enough to weather various political scenarios.”
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