Close Close

Portfolio > Portfolio Construction

Clinton Beats Trump—in Schwab Investor Survey

Your article was successfully shared with the contacts you provided.

While investors are split in party affiliation, nearly half plan to vote for Hillary Clinton, according to a recent survey from Charles Schwab.

The survey of nearly 240 investors with $250,000 or more in total investable assets was conducted between Oct. 20 and Oct. 21.

Of the investors surveyed, 28% identify as Democrat, 31% as Republican, 33% as Independent and 8% preferred not to say. However when it comes to how these investors plan to vote, 46% said Clinton, 28% said Donald Trump, 10% said an independent candidate and 10% were still undecided.

Investors think Trump will have a more negative impact on the U.S. and global economies than Clinton.

(Related: Which Party’s Presidents Are Better for the Markets?)

According to the survey, 35% of investors think Trump would have a major negative long-term impact on the U.S. economy if he wins. That compares to 22% who said the same if Clinton wins. On the global economy, 55% of investors predict a major or minor negative long-term impact if Trump wins, versus 32% of investors who said the same if Clinton wins.

Regardless of who wins and who loses, most investors (77% of those surveyed) don’t plan to make changes to their portfolio ahead of the election.

“Successful investors understand that markets are always moving, and there’s really no way to avoid the volatility that can come from uncertainty—even when it’s caused by a contentious political campaign,” according to Schwab commentary on the survey.

According to the survey, most investors (85%) are confident in their portfolios’ ability to withstand any market volatility after the election. This confidence cut across party lines, with 87% of self-described Democrats and 85% of Republicans saying they felt either “very” or “somewhat” confident their portfolio’s asset allocation would allow them to weather any post-election volatility.

“Election-related volatility is short-term, but my goals are long-term,” one survey respondent commented. “I don’t let myself be swayed by the hype. I look for substance.”

While most investors are holding steady on their portfolios, nearly half said they have spoken with a financial advisor or are considering it.

According to the survey, 14% of those surveyed said they had talked with a financial advisor about the potential impact of the election and another 31% said they were considering it.

The survey also found that a quarter of investors surveyed check their portfolio performance more frequently.

And while the majority of the investors surveyed have not taken any actions with regard to their financial portfolio in anticipation of the upcoming presidential election, a small percentage has taken action.

According to the survey, 12% adjusted their portfolio to be more conservative and 3% pulled out of stock market investments entirely.

— Related on ThinkAdvisor:


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.