Uncertainty surrounding the outcome of the US presidential election has increased. weighing on investors. As the election process draws to a close, financial advisors are recommending that investors stick to their long-term plans, regardless of who is elected or what happens in the markets in the coming days.

“The real risk is not the election, it’s our reaction. The average investor’s worst enemy is not policy changes or market fluctuations; it is their own behavior when scared or excited,” said Jason Siperstein, president and wealth advisor at Eliot. Pink.

Prepare for volatility, even if you expect positive returns

Experts suggest against making drastic portfolio changes based on expectations about the election and the economy.

“I urge people not to interfere with changing the ingredients of their portfolio based on their expectations of what might happen,” said Christine Benz, director of personal finance and retirement planning. at Morningstar, in a press release. recent interview.

Research indicates that despite volatility, average annual stock returns have been positive during the majority of election years since 1927.

“I expect volatility in the coming weeks regardless of who wins or loses, but we shouldn’t let it change the way we invest,” wrote William Michael Lofley, CFP at HBKS Advisors, in a email addressed to Investopedia. “Historically, it doesn’t matter who controls the White House: the stock market finds a way. It’s important to stay invested.

Megan Gorman, founder and managing partner of Checkers Financial Management, notes that certain election results could make market volatility less likely.

“Markets tend to prefer to have a president from one party and a Congress from another party. And that may seem strange because, from a more pragmatic point of view, it seems like nothing will be done,” Gorman said in an interview in September. “But it’s a question of certainty. If there is this idea that nothing can be done, we are almost certain of the results. »