What Does the 2020 Presidential Election Mean for Your Investments?

TD's Sid Vaidya talks about how this and the pandemic will affect the country for months to come

With a Presidential Election next week, coupled with economic uncertainty amid a global pandemic, many investors are wondering what the future holds.

"MoneyTalk" host Anthony Okolie recently spoke with TD Bank's Sid Vaidya, Chief Investment Strategist for U.S. Wealth, to pick his brain on how this historic election and COVID-19 might affect not only people's investment portfolios, but their retirement accounts and much more.

Vaidya says overall, he expects some more short-term volatility in the coming weeks and months due to the recent rise in virus cases, the election and questions to whether there will be another fiscal stimulus from the federal government.

He notes that volatility typically rises the closer we get to the day of the election, but that major concerns around Presidential Elections are usually "unfounded," as returns over the course of most Presidential terms are positive on average, he said.

"The perception of risk has generally not matched the reality of the outcome," he said about elections.

Vaidya also expects that no matter the outcome of next week's election, both sides of the political spectrum will come together after to pass some kind of stimulus like the C.A.R.E.S. Act we saw earlier this year.

In addition, "the Fed has clearly communicated they will do whatever it takes and for however long it takes to help sustain this recovery," he said.

What that means is continued support and programs to not only help individuals, but small and large businesses as well.

Vaidya said programs like this are meant to help improve corporate health, by allowing businesses, who keep so many employed, to raise funds at very low cost during a struggling economy.

As we've seen, COVID-19 has also augmented the move to digital and online services. Those companies making the move to include these digital services will continue to grow and benefit well past the pandemic.

Watch the full video above to learn more.