2020 Election: Is This Time Different?

Although November 3rd has now come and gone, as we approached the election, some investors felt fear surrounding the results. This could have led to thoughts or conversations concerning people wanting to pull their money out of the stock market, allowing the potential “volatility” to blow over and then getting back in.  In this scenario, in a perfect world, you avoid potential market volatility, emotional stress, and are able to repurchase at lower prices. This sounds like a pretty good deal, right? Unfortunately, there is no historical basis for this plan to be effective, and abandoning long-term, goal-focused investing because of current events is no longer investing, but rather gambling.  Also, looking back over the last 20 election years, the market has produced negative returns only twice, and those instances can be linked to factors other than politics.

If further reassurance is needed, let’s take a deep historical dive into how the financial markets behave during election years, and more specifically whether a Democrat or Republican president significantly impacts investment returns.  Since political views can be highly personal, it’s common for investors to feel that their political ideology has a more positive impact on the market.  The true data shows just the opposite.

The stock market, as measured by the S&P 500, has reached and eclipsed an all-time high in EVERY decade on record. This is evidence of the fact that the stock market is financially agnostic to the party holding office. For example, there have been 7 Democrat and 7 Republican presidents since FDR took office in 1933. During that time, a $1,000 investment would now be worth over $14 million.

Current events have the unique ability to make us feel like they are unprecedented. However, every election in history has been marked with divisiveness and controversy, yet the stock market remains resilient. Don’t take our word for it though. The famed investor Warren Buffet once said: “If you mix politics with your investment decisions, you’re making a big mistake.”  Don’t let this election cycle be your big financial mistake.

Got questions?  Contact the Purifoy Wealth Team today!

*This article was written by Michael J. Purifoy, CPA, CFP®, Executive Vice President, Southwestern Investment Group and Wealth Advisor, RJFS

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Jeffrey T. Dobyns


President, SageSpring | Financial Advisor, RJFS 

Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Beyond crunching numbers and investment strategies, at SageSpring, we’re about building relationships. When you encounter Founder & President of SageSpring, Jeff Dobyns, it’s easy to understand why this is at the very heart of who we are as a firm. You won’t find stuffy formalities with Jeff; instead, you can expect to find him sharing a warm smile, communicating a compelling vision, or patiently untangling life’s complex challenges with clients. He believes in truly getting to know clients, understanding their aspirations and priorities, and navigating their financial plans with a tailored, comprehensive approach. Our team members have often been caught taking notes on Jeff’s effortless relationship skills from a distance, and we admire them for striving to learn from one of the best. 

Jeff’s financial expertise and wisdom are the perfect match to his innate people skills. Jeff holds the prestigious CERTIFIED FINANCIAL PLANNERTM certification, Chartered Life Underwriter (CLU®), and Chartered Financial Consultant (ChLU®) designations, and has held executive positions with financial planning firms for more than two decades. 

His dedication extends beyond the office to the boardroom and the local community, where Jeff is passionate about giving back. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. Jeff actively supports other initiatives in the community by sitting on the board of The Signatry of Middle Tennessee and the Halftime Institute of Nashville. 

Witnessing his four children, Gracyn, Hunter, Tanner, and Logan, excel on the field is almost just as rewarding, if not more, than celebrating the victories of seeing his clients overcome obstacles and build wealth. Spending weekends boating on the lake, hiking mountain trails, and fishing with his family are the moments Jeff cherishes most. It’s this grounded perspective that reveals the true meaning of wealth for Jeff: not just numbers on a page, but the freedom to create experiences that enrich your life and the lives of those you love. When you choose the Dobyns McMillin Wealth Team, you choose more than financial expertise. You choose a partner who champions your dreams, celebrates your victories, and walks besides you on the path to achieving your unique goals.

**Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER TM, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.