With possible changes to healthcare, tax, and technology regulations that hinge on the outcome of the elections, planning ahead for possible impacts on your portfolio may make sense for your situation. Assuming history is a reliable indicator of future outcomes, we should see a sizable shift in the balance of power in Washington D.C. But one never knows—we will have to wait and see.
So how will an affluent investor like yourself deal with the uncertain outcomes that are caused by the upcoming midterm elections? And, how will this impact the performance of your assets in 2023?
A financial advisor with decades of experience investing in the global securities markets can help you navigate volatile markets produced by inflation, recession, and highly partisan political agendas.
LFA is a Swiss-based wealth management firm that helps affluent individuals and families navigate these turbulent waters. For example, LFA can diversify some of your assets into Swiss Banks and francs that can be more stable than the U.S. markets.
LFA managers are positioning their clients’ portfolios to protect principal and flourish when the markets begin their inevitable recoveries.
Following are the topics we plan to cover in this article:
- Upcoming U.S. midterm elections
- What investors are worried about
- How an offshore wealth management firm can help
- How diversifying your portfolio with Swiss francs can offer stability while you invest during volatile times
Based on history, wealth managers have a pretty good idea of how elections will impact the performance of your investments. But nothing is a sure thing.
Want to reduce your risk? Work with a wealth manager in Switzerland who specializes in global wealth management for American investors.
Upcoming U.S. midterm elections and stock market insights
With the 2022 midterm elections just around the corner, the soon-to-be results of the U.S. Senate and the House of Representatives races may change the control of the U.S. Congress. With all 435 House seats and 35 of the 100 Senate seats on the ballot for 2022, and 36 states out of 50 electing or re-electing governors, here’s what we do know:
At the time this article was written:
- There is uncertainty about which party will control both the Congress and the Senate following the election
- If there is no majority control of one party in the Senate following the election (50/50 power), then the Vice President has the deciding vote for various bills that pass through the Senate
- There may be a shift in who presides as the Speaker of the House if there is a change in the majority party following the election
Of course, no one can predict the election outcomes, but we can share some insight into how the securities markets react to the various outcomes of elections. This information can help you develop a flexible strategy that takes all of the economic alternatives into consideration.
Many investment professionals believe the stock market is a leading economic indicator. That is, current prices indicate what is going to happen in the economy during the next six months. Therefore, what investors think will happen in the next six months is already reflected in the current pricing of securities.
With inflation at its highest level in 41 years and the possible start of a U.S. recession, the pending election is like pouring gasoline on a bonfire.
Given the possibility of increasing volatility with steep price declines it should be no surprise that global investors are seeking investment alternatives that will help protect the current market value of their assets.
What investors are worried about
The inflation and recession struggles are real! Even the most affluent investors are concerned about inflation eroding the purchasing power of their assets and recessions causing steep market declines. Can you relate to any of their concerns?
- How will a shift in political power play out?
- U.S. government debt exceeds $30 trillion.
- Rising interest rates make trillions of debt more expensive to service.
- Reducing inflation is leading the U.S. into a deeper recession.
- A split government in Washington, D.C., will cause gridlock.
- 2023 has the potential to be a very turbulent year for investors.
- Global portfolios could fare better than domestic portfolios.
- Do I have the right financial advisor to navigate volatile markets?
- Am I exposed to excessive amounts of risk?
Don’t let the power struggle in D.C. cause you to make the wrong investment decisions. There are still global investment opportunities if you know where to look. Having the right team of global investment managers in Switzerland may be your best bet.
How LFA can help
Developing and executing sophisticated investment strategies takes specialized expertise and time to make the right decisions. It takes even more time to conduct investment research, actively manage portfolios, and track performance. As your financial situation increases in complexity and you are looking to broaden your diversification, working with a Swiss asset management firm might be worth exploring.
One alternative is the strength and stability of a Swiss-based wealth manager that is a financial fiduciary – the highest ethical standard in U.S. wealth management. Now is the perfect time to consider a Swiss-based wealth management firm that has access to the global market, Swiss banks, and investments in Swiss Francs – one of the most stable currencies in the world.
This is why affluent families have used Swiss wealth management for more than 100 years. Our dedicated team provides a full suite of investment management services developed specifically for U.S. investors, including:
- An array of sophisticated planning services
- Global wealth management
- Swiss banks
- Alternative investments
- Family office services
Diversify your investment portfolio outside the U.S. dollar with LFA. We are here to provide multi-generational advice and services for affluent U.S. investors!
We believe current economic conditions in the U.S. have created exceptional investment risks for our clients in the U.S. Some of this risk can be mitigated by investing outside the country. It’s safe to say that how elections affect investments will be dependent on the diversification within your portfolio.
Diversifying your holdings with the stability of Swiss francs can reduce your risk during volatile markets.
Talk to us about diversifying part of your assets into Swiss francs and global investment opportunities.
The Takeaway
Part of your net worth can be managed by a dedicated Swiss team that has decades of global investment experience diversifying assets into Swiss francs and global investment portfolios.
Schedule a call with LFA to explore global strategies you can use to diversify your investments and reduce your risk.
