With the midterm elections complete (well, almost), we wanted to provide you some insight on a survey completed by our investment partners at Lincoln Investment Advisors Corporation* (participants are listed below). They were able to survey the following companies to get their opinion on what some policy implications might be if control of Congress ends up being split. (We are not endorsing one party or the other…simply passing along useful information.)
If a split Congress ends up being the result, what implications does that have? As you can imagine, the survey results suggest not much will change from the current status quo and neither party will be able to make drastic changes. The surveys on personal income taxes and regulation changes both suggest as much looking at the “same” columns…
The survey results did reveal two areas of potential agreement in a split Congress…China and infrastructure. It seems both agree that increased tensions with China are an issue and also that infrastructure spending and improvement should continue.
For the markets, the year after the mid-term elections has historically been very strong with an average 1-year return of 15.2% as measured by the S&P 500**. We will see if that trend continues or not with inflation and interest rate concerns continuing.
We hope this was short but helpful! Let us know if you have any questions and be on the lookout for our year-end financial planning!
*Lincoln Investment Advisors Corporation (LIAC) is the subsidiary of The Lincoln National Life Insurance Company responsible for analyzing and reviewing the investment options within Lincoln variable products, providing recommendations regarding these options to Lincoln senior management. LIAC also serves as a Registered Investment Advisor, selecting asset managers and constructing model portfolios for use by financial professionals.
**S&P 500 Index is considered a reflection of the large capitalization U.S. stock market. It is the benchmark against which judging the overall performance of money management is used.
Jay Finke and Matt Held are registered representatives of Lincoln Financial Advisors Corp.
Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker-dealer (member SIPC) registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies.
Lincoln Financial Advisors Corp. and its representatives do not provide legal or tax advice. You may want to consult a legal or tax advisor regarding any legal or tax information as it relates to your personal circumstances.