Advising Clients Through an Election Year

Ben Engel, founder of Modesto Capital in Toms River, N.J., says the heated political divide in this country heading into the Trump vs Harris November presidential election is spreading over into the financial planning process.

Jeff Benjamin: Do you expect this unprecedented presidential election cycle to trigger increased market volatility?

Ben Engel: For sure, any time there is uncertainty the markets are volatile. With what's going on now, I expect a lot of volatility over the next few months. 

JB: Are you recommending any changes heading into this election?

BE: No, for the most part. I don't believe any candidate will make enough of a difference to warrant a permanent portfolio shift. Although sometimes these events help me understand a client's true risk tolerance and we will adjust accordingly, these are long term adjustments.

JB: In a Trump vs Harris matchup, which candidate do you think would be better for the markets?

BE: My gut feeling is Trump, because of his background in business. It can always go either way, but I do think market returns are higher up on Trump's list than it is for Kamala.

JB: Are your clients getting more anxious in this political environment?

BE: Definitely. Every time the elections come around; I always get folks wanting to sit it out. This time it's worse because of all the changes that are happening daily, I mean a candidate came pretty close to being assassinated, yikes! I always try to help clients think long term, 10-to-30 years, and over time I find clients will become more trusting in the process.

JB: Can you compare this current political environment to any recent market event or scenario?

BE: Yes. I remember during the last presidential election in 2020, a friend let me know he's selling his portfolio. All of it. I am pretty sure he's still waiting for a great entry point.