#politics

Be Careful of Political Biases

We are in the middle of election season and emotions are very high. I know many clients are nervous and considering making financial decisions based upon who wins the presidency. This is all too common and the chart below from J.P. Morgan highlights the relationship of consumer confidence and political affiliation.

What is interesting is you can see that consumer confidence is directly influenced by political affiliation. For example, look at Republican confidence being very high until Obama took office in 2009 and it stayed low until Trump took office in 2017. We can see the same but opposite with Democrats where it is highest with Obama in office.

The stock market has continued to climb over the years regardless of what political affiliation is president and there is no reason to expect otherwise. During the election season stay informed, treat everyone with respect, and be aware of your political bias and how it may impact your outlook.

We are here to help and please contact us if you would like to review your long-term goals and how best to navigate market ups and downs during and after the election season.

Election Year Politics Kills US Mortgage Refinancing Fee

When is a government fee not really a fee? When it is a tax in disguise! This is exactly what the two government-sponsored mortgage agencies were going to put into effect beginning September 1st. Freddie Mac and Fannie Mae were going to charge homeowners a ½ of 1% fee to refinance their homes because they want to make up for losses due to foreclosures and non-payments during the COVID-19 pandemic. This so-called fee was not going to be applied to new home financings, but solely to re-financings. This became too controversial for the politicians, especially in an election year, that they have decided to delay the fee until December 1, 2020. How coincidental that the delay in the new tax was postponed until after the election. Welcome to the land of fees and taxes.

We are telling people to re-finance now, if appropriate before your taxes (we mean fees) go up.