Karl Eggerss was interviewed on CBS and discussed how to avoid making mistakes with your money the closer the election gets.
Sharon Ko: Election season gets people fired up on both sides of the aisle. Consider how changes to the oval office can affect your money. First, expect fluctuations.
Karl Eggerss: We tend to see a weak stock market after a new president takes office, which makes sense because they may have a different philosophy. Obviously, it could lead to a different Congress. So again, you could have all types of changes happening and that… Wall Street doesn’t like uncertainty.
Sharon Ko: But with that, financial advisor Karl Eggerss says, “Don’t let your emotions muddy your strategy.”
Karl Eggerss: We saw that back in the last election, as a matter of fact. Nobody really knew what was going to happen, who was going to win, and the market went one direction then changed violently the other direction, started to go up and people were caught that made too big a moves. They were caught on the sidelines not really knowing when to get back in.
Sharon Ko: So what is the best action to take? Eggerss says stress tests that portfolio of yours.
Karl Eggerss: Think about possible scenarios today because things can change, right? If we do have a different president, if we have a different Congress, tax rates could change. So it’s best to have a diversified portfolio. Sounds a little cliché, but a diversified portfolio that can weather the storm, and that’s one that you can sleep at night with, regardless of the outcome of the election.
Sharon Ko: The top assets he recommends to invest in, stocks and real estate, they perform the best long term.