CHICAGO, Oct. 27, 2020 (GLOBE NEWSWIRE) -- The 2020 U.S. election seems like a fitting end to a tumultuous year of market volatility. And while traders are actively looking for an edge, what about long-term investors? How are they looking at the market as the country considers its political direction for the next four years?
To get answers to these questions, automated money management platform M1 Finance conducted a survey of 601 investors and presented its findings in The M1 Investor Election-Sentiment Survey.
Most notable among the survey’s results, M1 Finance found that:
63% of investors do not plan to change their investing strategy, no matter the outcome of the 2020 presidential election.
“One thing was clear from our survey: long-term investors aren’t changing their portfolios and strategies despite the election uncertainty,” said Brian Barnes, CEO of M1 Finance. “Even if every day feels like it brings a new rush of investors getting in on a trending stock, headlines don’t take hold of long-term investor strategies. Our survey shows that this 2020 election season, a major event culminating a volatile year, most long-term investors are staying consistent with their investing plans.”
KEY FINDING: INVESTORS WILL STICK TO THEIR STRATEGY – NO MATTER WHO WINS
After the election, most long-term investors say they intend to stay the course into and after the election, with 63% saying they’ll invest as they have been no matter who wins.
What it means: Overall, the sentiment is clear: long-term investors have little interest in timing the market – especially during a presidential election.
KEY FINDING: INVESTORS HAVE KEPT MONEY IN THE MARKET
Even with this year’s market volatility and the uncertainty of the election, more than half of investors surveyed are putting more of their money into the market than into savings.
Specifically, 52% of long-term investors planned to invest more than they save ahead of the presidential election.
What it means: Investors, specifically long-term investors, are focusing on their time in the market, knowing that politics can elicit more emotions than data.
KEY FINDING: INVESTORS ARE TORN ON WHICH WINS WILL BENEFIT THEM MOST
Investors must also factor in the implications of party control in the House and Senate. When asked what election outcome investors feel would benefit their investments most:
- 34% said that a full Republican sweep would be best.
- 26% said that a Democratic sweep would be best.
- 33% said a Republican president and Democratic congress would be better for their portfolio.
- Just 7% said a Democratic president and Republican congress would be best.
What it means: No one leans more strongly towards a specific election outcome as it relates to investors’ portfolio performance than another.
Therefore, investors plan to stick to their current investment strategy this election season.
“Despite months of seeing media headlines about traders running to buy and sell stock, we’re seeing long-term investors – especially those using M1 – lean into sustainable strategies,” said Barnes. “M1 investors believe psychological pressures, especially those heightened by politics, should stay out of your portfolio. And instead, the long-term investing mindset should drive financial strategies now and well beyond this year’s election.”
To learn more about M1 Finance and The M1 Investor Election-Sentiment Survey, visit www.m1finance.com.
About M1 Finance
Award-winning M1 Finance helps people manage and grow their money in easy, smart, automated ways – for free – on one integrated, secure platform. By combining investing, cash management, and portfolio lines of credit, M1 provides hundreds of thousands of people with choice and control over their money.
M1 was named Best Robo-Advisor for Sophisticated Investors and Best for Low Costs by Investopedia in 2020.
For more information or to create an account, please visit www.m1finance.com.
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Disclosures
“M1” refers to M1 Holdings Inc., and its affiliates. M1 Holdings is a technology company offering a range of financial products and services through its wholly-owned, separate but affiliated operating subsidiaries, M1 Finance LLC and M1 Spend LLC.
M1 does not provide investment advice, and this is not an offer or solicitation of an offer, or advice to buy or sell any security, and you are encouraged to consult your personal investment, legal, and tax advisors. All investing involves risk including the risk of losing the money you invest, and past performance does not guarantee future performance.
Brokerage products and services are offered by M1 Finance LLC, an SEC registered broker-dealer and Member FINRA/SIPC.
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Media Contact: Jillian Smith, jillian@propllr.com