Election? Wait, you mean there’s an election going on right now?
If you’re like me, you’ve got election exhaustion right about now. The TV ads, the radio adds, and the e-mails have reached fever pitch levels. A friend told me yesterday he would be glad to see Wednesday just to get rid of the political e-mails popping up in his inbox on a daily basis. We won’t make any more comments about the Election until it’s over. Our general advice remains the same as it has throughout this crazy election season – stick to your long-term investment strategy. We’ll be able to shift gears once we know more about Fiscal Policy in a few weeks.
While there has been much trading on angst of late, the underlying economic fundamentals have not changed. Corporate earnings were on a record pace in the 3rd quarter and the U.S. economy is functioning normally, thanks to the consumer. The National Financial Conditions Index (NFCI) has barely moved over the last 6 weeks and has steadily remained below zero – which means the economy is at a healthy level. Investors are more focused on the noise rather than how well the economy is functioning.