What does the Affordable Care Act Mean for Your Portfolio?

However you personally feel about the Affordable Care Act, the recent negative impact of this failure on the stock market should serve as a warning to all individual investors to not be too complacent. Between November 4th, 2016 and March 1st, 2017, the S&P 500 stock index, without factoring in dividends, experienced a gain of 14.90%. Since Wall Street had experienced negative earnings growth for the last 4 quarters, positive growth was already anticipated. The election result and the new administration’s perceived pro-business stance just happened to serve as a catalyst to the stock market move that followed.

So what does this mean for your portfolio? There are clear cracks in the Republican coalition and the Democrats have intensified their challenge to any effort in the House and Senate to move forward the President’s agenda. The lack of unity attempting to repeal the Affordable Care Act, shows that a political dissonance on both sides may prove a real threat to executing some of the other more major pieces of legislative initiatives of the President’s.  Worse yet, many of these initiatives have already been baked into the cake, with the market already having largely discounted them as done deals.

As a result, we are recommending that clients in this environment use the opportunity to review their equity allocation, re-balance their portfolios if appropriate, and at least consider taking some gains at this time. Although the probabilities still favor a resumption of the upward trend sometime in the next few months, we believe there is no sense in becoming too complacent or allowing greed to overtake your long term investment outlook. In this kind of situation, an ounce of prevention is worth a pound of cure.

If you would like to learn more or receive specific advice about your portfolio, please give us a call at (860) 674-1999 or email us at jbaronian@ishbaronian.com.  We would be happy to conduct an initial review of your portfolio, at no cost at your convenience.

Investments in mutual funds involve risk including possible loss of the principal amount invested. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate; investors shares when redeemed, may be worth more or less than the original cost. You should consider the investment objectives, risks, charges, and expenses of this fund carefully before investing. Most funds are offered in more than one class of shares. When deciding whether to purchase a particular class of shares, investors should consider the investment amount, anticipated holding period, and other important factors. This report was prepared from data believed reliable; but is not guaranteed by us to be complete or without error. Nothing herein constitutes an offer of securities or solicitation of the purchase or sale thereof. Opinions expressed are subject to change without notice. Securities offered through Westminster Financial Securities, Inc., members FINRA and SIPC. Prospectuses available upon request.
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