Skip to main content

Astoria Strategic Wealth

What's Next? And, "Thank you" to our Nation's Military and their Families

With the election largely behind us, we continue to anticipate volatility until there is more certainty on the way ahead for the Presidency, the Senate race and the continued impact of the Coronavirus.

So how then should you proceed as an investor? Hopefully you were able to review our pre-election message which encourages calm amidst the uncertainty.

More practically, the impact of Biden’s tax proposals at this point largely rest on whether the Senate remains red (as expected) or flips blue in early January. It appears less likely that these tax proposals will go into effect starting in 2021 given the expected gridlock in Congress. However, keep in mind that many of the benefits built into the Tax Cuts and Jobs Act of 2017 are scheduled to expire in 2025. A Biden administration may seek another round of stimulus, though this in our opinion could have long-term deleterious effects on our national debt and deficit.

We are absolutely believers in our country and in the ability of capitalism to overcome many of these challenges. Historical charts tell us that election years tend to end on a high note, and that a split Congress has been positive for stocks. The message that is perhaps most significant, however, is that there is likely literally, absolutely no one that predicted the swings we have seen this year so far in stocks, bonds, real estate, etc. Stay invested, stay diversified, dollar cost average. This approach requires discipline in emotion and execution, but it works.

This week also marks a day to recognize those who have served our nation, and those who have helped to protect our country and way of life. As a veteran-owned and operated firm, we are committed to continuing to serve our military veterans as our small way of saying "Thank you".