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Edelman Financial Services CEO Ric Edelman on the impact of Europe and the Presidential election on investors’ portfolios.
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Major headlines can translate into major headaches firm that serves on the one hand Mitt Romney.
President Obama squaring off and on the other the crisis over in Europe -- markets worldwide so what does all this mean for you of course your money joining me now let's have set.
Navigate today's markets for cattlemen chairman and CEO of element financial services.
Yeah what you don't really think -- -- that the election -- that big of an issue for investors why.
History tells us -- that investors place far too much energy and attention on presidents they get too much credit and too much blame for.
What's going on in the economy in the stock market if we go all the way back to 1950 and look at all the twelve presidents since that time.
Democrats have been there are six times six of them Republicans.
And what we discover is that if you were invested only when -- party was in power.
You -- ended up with a lot less money than if you were simply about said the whole time.
So we need to recognize that investing is a long term strategy whoever wins in November -- have gone in four years if you're retiring in twenty years.
-- -- -- -- And also -- -- try to retire like tomorrow and they can't but that's enough pressure erect.
-- you say that brings -- that's an entirely another problem I mean that's why the election is affecting a lot of people out of our Beers.
What do you say you're using grain trump threatened oil and you take a look at BS and pay you break it down for our viewers I want to show our viewers this map to -- get them a sense of what we're talking about here because.
You look to the Democrats just mentioned the suit the Republicans the average -- that was either or this kind of goes your point stand the market don't worry about who is an office.
Because in any state any state over the tickets 1950 to 2011 need to research basically you're saying.
I'd make nine point six million dollars with a -- a thousand dollar investment in the S&P 500.
And I would I wouldn't have that the -- guys thinking I wouldn't have that if you know I tried to get in -- -- based on who was an.
-- Exactly right you would have a fraction of that amount was no matter which party you -- and what we have to recognizes that this chart is only telling us.
Half the story it's showing us.
Which party is in the White House but it's ignoring which party is controlling congress when we look at a more -- detailed chart which I could do for you as a -- time.
Do you find that the numbers really really vary depending on not only who's in the White House -- who's in the house and the senate makes it very Dicey to figure out.
Charts like pictures those are all his -- ice is its numbers.
Here's an hour before in that -- -- -- not early numbers an issue that is -- I mean that's the one thing that seems to be holding back a lot of American investment US investment.
Holding back.
Frankly companies from from stock buybacks things like that what about Europe what what -- -- short term.
Time -- on the concern level are you with Europe.
I work frankly bullish.
And and it sounds kind of weird because Europe is a mess it's been a mess it's going to be amassed -- the -- -- -- -- bullish about it long term.
Is because this is a political issue it is not an economic issue it is simply a matter of the elected leaders in Europe.
Doing what they have to do it's not what they want to do it's not what often bill voters want them to do.
But at the end of the day they're going to do what is necessary.
Unfortunately they're gonna wake of last minute they're gonna take us of the precipice.
Before they act and that's what gets investors nervous and jittery and frustrated but at the end of the day they are not going to voluntarily left the continent collapse.
-- -- amount that would be nice it's -- to have the same time you mention what makes people nervous I'm sorry but a lot of our viewers that -- Lot of those dividend paying stocks are nervous about the fiscal -- F for some reason.
This not happened you've got Armageddon tax and again at the end of the year.
I'm 43%.
For dividends I mean there's there's some really rough numbers out there that are that are frightening it makes you not wanna be inequities wreck.
Well I think what it makes you realize is that corporate CEOs aren't dumb they realize what you just said because you're absolutely right Sheryl and so what we can expect to happen is that companies will reduce their dividends.
They would rather let its shareholders receive the profits -- capital gains.
Then higher tax dividends consoles -- -- of corporate America will respond we're not gonna like get but all these reasons point two why congress is likely going to change the rules.
-- that like that -- answer -- thank you very mantra got a -- that don't shout.
It.
