Why investors should hold their nerve ahead of big political year

This year is a massive year politically, with elections taking place on both sides of the Atlantic during 2024.

So what does that mean for you and your money over the next 12 months?

Even if you’re excited about the prospect of a new government, the run-up to an election still brings with it considerable uncertainty.

After all, you don’t know who will be in charge after the votes take place, and what policies will be in place that affect you and your daily life.

And will politicians eager to win votes announce policies that benefit or penalise you, your business and your investments?

You simply don’t know – and more to the point, businesses and the markets don’t know either – and that can make many people jittery.

Of course, plenty of others will be feeling the same, and will therefore be delaying key financial decisions until a clearer picture of what the operating environment looks like starts to form.

All this adds up to a climate where the value of your investments might start to fall – and that can be alarming to observe.

It might even prompt you to sell up in a panic.

But it’s really important to remain calm and disciplined during this time of uncertainty and stick to your plan.

Investing in any asset type or industry is a long-term proposition, and the disruption that will come with the general election at home and the presidential election in the US will only be short-term.

So don’t panic, as the situation will settle down sooner rather than later.

Once the results of the elections in the UK and the US are in, we’ll have a much clearer idea of the lie of the land over the next few years – and the uncertainty will clear.

In the meantime, don’t waste precious time checking the value of your investments day after day, as it’s long-term growth that matters.

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