As the 2016 election draws closer, Americans are casting in responses on how the race has impacted their investment decisions.
Recently, BlackRock released their “Investor Pulse Survey,” a study examining investing attitudes and behaviors of 1,663 Americans (including 1,440 investors) during the election season. Among findings, the survey reported that nearly two-thirds (63%) of Americans say the election has impacted their investment choices in the past year, and three quarters believe the upcoming election will have a higher effect on personal investment choices. More so, one-third of Americans consider the election as a danger to their financial future, and six in 10 (59%) say their personal savings and investments will serve as a factor in who they vote for.
“It’s clear that many Americans view the election as a source of uncertainty, making them less comfortable about investing,” says Robert Kapito, president of BlackRock.
However, Kapito believes investors shouldn’t have much to worry about.
“Good investment decision-making hinges on recognizing that short-term events often do not dramatically alter the long-term trends that truly determine an investor’s ability to achieve long-term goals,” he says. “Regardless of how they choose to respond to election uncertainty, investors are well advised to make sure that their portfolios remain aligned with all of the realities that will really shape their financial future no matter who occupies the White House.”
Regardless of which candidate wins, the survey found that 71% of Americans believe market volatility will continue to rise. Due to volatility increase, over half of respondents (52%) say they have found an interest in professional advice.
Furthermore, Americans anticipate related adjustments no matter which party takes over the White House. The survey reports 16% of Americans would increase stock allocations following both a Democratic or Republican victory, and bond allocations would increase for 13% of Americans with a Democratic win, or 12% of Americans following a Republican win.
Regarding retirement concerns, about six in 10 (62%) of Americans cite volatility as a cause for uncertain retirement prospects, with women feeling more irresolute than men, at 65% compared to 58%.
Three-quarters (76%) of Americans believe the president plays an imperative role in warranting financial security during retirement, with both Democrats and Republicans concurring, at 78% and 81% respectively.
More information on BlackRock’s Investor Pulse Survey can be found here.