Belski: Get Through Election Noise, Focus on Fundamentals

The video discusses the impact of elections on the S&P 500, emphasizing the importance of focusing on economic fundamentals rather than reacting emotionally to political events. It highlights the changes in large, mid, and small cap stocks over the years, noting their resilience and growth potential. Historical market trends are analyzed, particularly the influence of elections on market performance. The discussion also covers the role of regulation and political processes in shaping market dynamics, with a focus on the pharmaceutical industry and potential legislative roadblocks.

What is the main advice given regarding market behavior during election times?

• Sell all stocks immediately.

• Rely on political predictions.

• Focus on economic fundamentals.

• Invest heavily in small caps.

How have small cap stocks changed structurally in recent years?

• They have become more reliant on platforms.

• They have decreased their cash holdings.

• They have increased their dividend payouts.

• They have become less affected by political processes.

What historical trend is observed in the S&P 500 during election years?

• The market always declines after elections.

• The market is unaffected by elections.

• The market always rises before elections.

• The market tends to decline if the incumbent party loses.

What is a potential consequence of a Clinton win for the pharmaceutical industry?

• No change in market conditions.

• Increased profits due to deregulation.

• Immediate market crash.

• More regulation and potential challenges.

What factor could limit the impact of a new political administration on industries?

• The level of public support.

• The number of legislative roadblocks.

• The popularity of the president.

• The strength of the economy.