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Obsidian Market Update 11/11/2022

Hi friends!

 

This week, we’ll take a look at the election results and what they might mean for your portfolios. Then, it’s time to start thinking about holiday shopping, and we’ve got some guides for you.

 

The 2022 midterm elections are over, although as of this writing some key races have not been decided. Congressional control is on a razor’s edge at the moment, and some major gubernatorial races are also not determined. What is clear is that it was not the sweep the Republicans thought it would be going in, but we don’t know what the material results will be around who controls Congress, nor what this means for the 2024 presidential election.

 

With the voting itself over, it’s a good time to take a look at your portfolios. Stocks have only gone up after midterm elections in recent history, regardless of which party won. History also shows that a divided government (with the executive branch belonging to one party and Congress to another) is best for average annual S&P returns. There’s no one clear reason why, but partisan gridlock tends to be favorable for the stock market and an end to election uncertainty probably doesn’t hurt either.

 

Investors are more focused on the Fed’s interest rate hikes to curb inflation than they are on political parties–and the election outcome is not likely to change Jerome Powell’s course. Remember, too, that we manage long-term portfolios that are not influenced by political events like elections. Over the past 35 years, we’ve seen dozens of elections, administrations, and congresses. Our objective is to manage portfolios according to our clients’ goals and dreams, taking economic patterns into consideration for the long term.

 

In the short term, though, it’s a fun time to start planning your holiday gift list. The New York Times always has a great guide–here are some of our favorite gift ideas from it:

 

  • A FujiFilm Instax photo printer. Your faithful weekly email writer has one of these and can vouch for it–it’s fantastic.
  •  Bird watching is so in right now, and these cool binoculars will take this great hobby to the next level.
  • Lego plants, whether bonsais or bouquets, are a great gift for crafters and botany lovers alike.
  • Is it bigger than a breadbox? Turns out, it IS a breadbox–with a bamboo cutting board on it. It’s chic and would look great on any countertop.
  • The cutest, classiest bottle opener ever.

 

That’s it for us this week! Fingers crossed you’re on the nice list, and we’ll be back in your inboxes next Friday.

 

How We Help

 

This week we had the pleasure of helping a blended family. We all know that sometimes goals, dreams, and alignment can change in marriages. Oftentimes when one chapter in life ends, a new chapter in life begins and is written. We have clients who are currently writing many new chapters and their financial planning is one of them. Both spouses have successful careers, complex estates, and families from previous marriages. We at Obsidian went back to basics for this family and were the architects behind a new Lifestyle Protector Program for them. As they prioritized their goals, we quickly found that estate planning was a major concern. We were able to make sure that each of them was able to take care of one another, even in the case of death or incapacitation,  while also preserving each of their separate estates for their kids of the previous marriages. Our greatest joy comes from helping folks develop their goals especially when two families are coming together out of love and a new bond.

 

Advisory Services offered through Obsidian Personal Planning Solutions, LLC. Securities are offered through Triad Advisors, member ​FINRA/SIPC.​ Obsidian Personal Planning Solutions, LLC, and Obsidian Personal Planning Solutions, Inc, are not affiliated with Triad Advisors.

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