The impact the election could have on the stock markets - WDRB 41 Louisville News

The impact the election could have on the stock markets

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The votes have been cast and President Barack Obama has been elected to a second term. Mark Lamkin with Lamkin Wealth Management is able to explain what that means for the economy.

"The stock market has actually done better with a democratic president. It's also done better with mixed government," says Lamkin. According to him, the stock markets do 9.77% better with a Democratic President and a republican House and Senate. The combination that we have now, with a Democratic President and Senate and a Republican House, is the second best combination.

President Obama has already said he will reappoint Federal ReserveChairman Ben Bernanke. Lamkin says that provides some stability, which can cause the stock markets to do better.

There is going to be a big barrier to economic growth in the short term. $600 billion of automatic tax increases and spending cuts could take place in January if the House, Senate and President don't agree on budget cuts.

Lamkin says the automatic cuts would cause a 2-3% drop in the GDP. The stock markets could drop 10-15%.

There are things you can do to keep your investments safe. Lamkin recommends that you invest in bonds rather than the stock market. There are also certain segments of the economy that do better under a Democratic President like homebuilding, managed care, assisted living facilities, farm and agriculture.

Lamkin Wealth Management

5151 Jefferson Blvd., Suite 102

or

901 Lily Creek Drive Ste. 102

office: 502-961-6550 Office

toll free: 866-961-6550

www.lamkinwealth.com 

"Securities Offered Through LPL Financial, Member FINRA/SIPC and an Investment Advisor"

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