Labor Day has passed and so have the political conventions. This means we are officially in election season. Though we will not see any political commentary in our economic analysis, we have to acknowledge that national elections can have an effect upon the markets. And we are not talking about potential winners, we are referring to the process of getting elected.
For example, the harsher the rhetoric, the more unsettled the markets can become. On the other hand, the political rhetoric has been amped up for so long, the markets can start to become immune to the firefights. And with the country dealing with a pandemic and unrest at the same time as election season is progressing, things could get very interesting, indeed.
And though we will not be covering political positions -- nor will we be keeping score -- we will be conveying one consistent message. It is important for everyone to participate in the process by voting. That is what a democracy is all about. From there, let the chips fall where they may during these remarkably interesting and challenging times. Regarding the economy, the Federal Reserve meets this week-- their last meeting before the election. Traditionally, the Fed does not make major announcements during the election season, unless there is a true emergency. Thus, we are not expecting an appreciable change in policy this time around.