How the 2024 Election Could Affect Your Portfolio

Election Day is Tuesday, Nov. 5, and the uncertainty can present pitfalls for investors.

“There are a lot of emotions involved,” says Dan Lefkovitz, a strategist with Morningstar Indexes and co-host of The Long View podcast. “It’s also really hard to predict the results of an election, what sort of policies are going to be enacted, what the market reaction is going to be.”

Although investors’ instincts might be to race to prepare for these developments, that’s not always the best course of action.

Dan Kemp, global chief investment officer for Morningstar Investment Management, explains:

When investors face uncertainty, they might seek narratives that predict the future and then change their portfolios accordingly. This can lead to volatility in asset prices, risking investors being whipsawed as prices overshoot in one direction and then another.

So it is vital to remember an old investing axiom: “Don’t just do something; stand there.” The most important thing an investor can do is stick to their plan and avoid reacting.

That said, the election’s outcome may have policy ramifications for investors and their money over the long term. This may include retirement-related issues, such as Social Security’s solvency and the availability of environmental, social, and governance funds in employer-sponsored retirement plans, the costs of healthcare, the future of Medicare, and taxation.

We’ve compiled these insights that unpack what a new administration could mean for investors. We’ll continue to add to this collection as the election approaches, so bookmark for the latest.

The 2024 Election and Your Portfolio

What should you do with your portfolio ahead of the election? In short: probably nothing—or at least nothing that depends on whom you expect to win. Your time horizon and goals should be your portfolio’s key drivers, not who’s in the White House.

Still, it’s natural for investors to have questions about the potential opportunities and risks that may emerge this year. Our analysts share their insights on how to think about the factors that may influence your investments.

The 2024 Election by Sector and Industry

Global Election Perspectives

Outside the US, numerous other global elections have raised their own questions about potential changes to economic and fiscal policies—including in the UK, France, India, and more.

We’ve compiled perspectives from our global colleagues on these elections and what they could mean for the markets.

From the Morningstar Archives

2024 is far from the first election to spark investor concerns of market volatility.

Our analysts have been digging into the volatility and potential fallout of presidential elections for years. And though each election presents unique risks, some concerns play out during every election cycle—which means a lot of the advice from years past still applies.

Below, explore content from previous presidential elections that continues to hold true in 2024.