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A Different Degree of Wealth

Election Day is Over: Key Insights for Wealth Management in a Shifting Political Landscape

Dear Clients and Friends,

As the dust settles after the recent elections, now is an ideal time to assess how the new political landscape might impact wealth management strategies. Elections often bring uncertainty, but they also present opportunities for informed decision-making. Below, we will outline key insights that may guide your investment approach in this new political environment.

Understanding the Political Context

The results of the recent elections reflect a dynamic and evolving political environment. Factors such as party control in Congress, shifts in local governments, and the overall sentiment of the electorate may influence economic policies, regulatory frameworks, and market conditions.

Key Political Outcomes:
- Congressional Control: With one party retaining a majority in the House of Representatives and gaining a majority in the Senate, we might see significant shifts in fiscal policy, tax legislation, and regulatory reforms. Historical patterns suggest that when a single party controls both the House and Senate, there tends to be a more streamlined process for implementing major policy changes. This situation may result in increased investor confidence or anxiety, depending on the perceived direction of these changes.
- State-Level Initiatives: State governments are also critical, as they may adopt varying policies on taxation, healthcare, and energy, which could influence regional economic performance. States often serve as testing grounds for innovative policies, and changes at this level may ripple through local economies.

Economic Policy Implications

Tax Policies:

- Tax reforms could be on the horizon. Potential tax cuts may significantly affect disposable income and consumer spending, thereby impacting economic growth.

Regulatory Environment:

- Now that the election is over, the regulatory landscape is expected to become more flexible. Industries such as energy, healthcare, and technology might experience varying levels of regulation that could affect profitability and investment potential.

Energy Policy:

- There may be a renewed focus on domestic drilling. We can expect a shift in energy policies, particularly regarding domestic oil production. The administration is likely to prioritize expanding domestic drilling to reduce reliance on foreign energy sources and lower fuel costs. This could mean opening more federal lands and waters for exploration and loosening environmental regulations to encourage production.

Market Reactions and Trends

Historically, markets have tended to react to election outcomes. While past performance is not indicative of future results, understanding these patterns may inform your investment strategy.

Market Volatility: Post-election periods might exhibit increased volatility as investors react to policy changes and economic forecasts. Historically, the stock market may see heightened fluctuations immediately following elections, as investors recalibrate their expectations. Staying informed and maintaining a diversified portfolio may help mitigate risks during such times.

Investment Considerations

In light of the shifting political landscape, consider the following strategies that may be beneficial:

Diversification:
- Maintaining a diversified portfolio may help reduce risk. Consider broadening your exposure across various asset classes, sectors, and geographies. This approach might cushion against volatility that may arise from political shifts and economic changes, allowing you to balance gains and losses across your investments.
Liquidity Management:
- Managing liquidity may be essential, especially during periods of political or economic uncertainty. Ensuring that you have sufficient cash reserves may provide flexibility to respond to market opportunities or mitigate risks as they arise.
Risk Assessment and Rebalancing:
- Regularly assess the risk profile of your portfolio in response to changing political and economic conditions. Rebalancing your portfolio may help ensure that your investments remain aligned with your risk tolerance and financial goals. This proactive strategy might enable you to adapt to new market realities and maintain a well-balanced investment approach.

Financial Planning in a Shifting Political Landscape

With new political shifts, aligning your financial plan to potential policy changes is key. Consider tax-efficient strategies, such as maximizing retirement accounts and tax-loss harvesting, to adapt to possible tax adjustments. Increased market volatility during political transitions reinforces the value of a well-diversified and long-term portfolio, which can help manage risk without reacting impulsively.

Retirement plans may also need reviewing, especially if changes to Social Security or Medicare are likely. Ensuring your estate plan is up to date with potential tax rule changes can help protect generational wealth.

By preparing for varied political outcomes, such as potential shifts in tax and regulatory policies, you can strengthen your plan’s resilience and keep your financial goals on track, no matter the political climate.

Final Thoughts

In navigating this evolving political landscape, staying informed and adaptable in wealth management strategies is important. Understanding potential policy changes and their impact on the economy and markets can lead to more effective positioning and response. For additional insight read Wealth on Purpose by Bryan Ballentine.

Please feel free to reach out if you have any questions or if you’d like to discuss your investment strategy in detail.

Sources: Located at the bottom of article

Golf Tip of the Week:

Is a lack of shoulder mobility causing your slice? How to test and improve it

You can spend hours on the range trying to fix your slice, but your technical issue might actually be caused by a physical limitation in your shoulder. If you don’t have proper mobility in your trail shoulder (right for righties), then you’ll fight a slice no matter how hard you try and swing down into the ball from inside the target line, a move that helps correct the weak, curving shot.

“I would say hips and shoulders are the biggest thing,” Hovis said when asked about the most common limitations he sees in everyday golfers. “You’ll see amateurs try to move too far in their backswing, outside of the range of motion in their hips and shoulders. It ends up throwing off their posture throughout the swing. Maybe they’ll stand up and early extend.”

Trail-shoulder mobility is particularly important in the golf swing because it allows players to properly shallow the club in transition to hit the ball from the inside, as Hovis explains in the video below. From the top of the swing, many good ball-strikers move their trail elbow down and toward the ball. This puts the shoulder in external rotation, which is key to being able to hit draws.

If you’re not able to get enough external rotation, however, you’ll struggle with pulls and slices. Before you should work on improving your shoulder mobility, the first step is assessing whether you have enough to begin with, Hovis says.

To test your shoulder mobility, Hovis says to sit down in front of a mirror with the trail arm bent 90 degrees at the elbow. Lift your arm up so that your upper arm is parallel with the floor and your hand is pointed to the sky, keeping that 90-degree angle at the elbow. From there, see if you’re able to move your hand back behind you without moving your elbow.

“Assess whether you can get past 90 degrees without cheating with your lumbar spine,” Hovis says, explaining that your back should be straight throughout the test. “I’ll see players can’t get to or past 90 degrees. A history of rotator-cuff injuries or other things that come up throughout the course of our lives can cause that limited mobility.”

If you struggle to get past 90 degrees, you should work to improve this external shoulder rotation. Hovis shares his favorite exercise to do that.

At your gym, find a cable machine and put it to the highest setting. Add a little bit of weight—about 20 pounds, Hovis says—to provide a bit of an anchor. Then, getting into that same positon with your arm 90 degrees away from your chest and a 90-degree bend at the elbow, step forward into a stretch.

“I’m just trying to get a feeling of a pull through my chest, and I’m trying to max out my shoulder rotation,” Hovis says. Allow the weight to slightly pull your upper arm behind you as you step forward, which externally rotates your shoulder. Hold this stretch for only a few seconds, Hovis says, then step back and repeat a few times.

After that, Hovis says to get into your golf stance and try to replicate that feeling in transition. “Oftentimes players will have good range of motion in the stretch, but then I get them into the golf stance and they can’t move past 90 again,” he says. By reinforcing the movement while in your golf posture, you’re further increasing the shoulder mobility and training your body to feel the external rotation that will help fix your slice.

Golf Tip adapted from golfdigest.comⁱ

Recipe Tip of the Week:

Slow-Cooker Pork Chops

Ingredients

4 boneless pork loin chops (about 1 inch thick)

Kosher salt and freshly ground black pepper

3 tablespoons all-purpose flour

1/4 cup whole-grain mustard

2 tablespoons honey

1 small shallot

1 large Pink Lady or Fuji apple

Cooked grits or buttered rice, for serving, optional

Directions

Lay the pork chops on a rimmed baking sheet and sprinkle both sides of each chop with salt and pepper. Put the flour on a small plate. Coat both sides of the chops with the flour and put back on the baking sheet to come to room temperature while you prepare the remaining ingredients.
Add the mustard, honey and 1 tablespoon of water to a 4- to 6-quart slow cooker and stir to combine. Cut the shallot into rings and add to the cooker, separating the rings. Core and cut the apple into 1/2-inch chunks and add to the cooker with 1/4 teaspoon salt. Stir to combine the shallots and apples with the sauce. Spread the mixture in an even layer and lay the pork chops on top, overlapping as needed.
Cover and cook on low until the pork is cooked through, about 3 hours. Transfer the chops to a large plate and top with the warm apples and sauce. Serve with creamy grits or buttered rice if desired.

Recipe Tip adapted from foodnetwork.comⁱⁱ

Travel Tip of the Week:

These Are the Best and Worst Airports for Holiday Travel, According to MarketWatch

The holiday season is nearly upon us, which means it’s time to book those flights to see your parents, in-laws, siblings, family, friends, or even that solo getaway you so desperately need at the end of the year. But before you do, make sure to consider all your flight options because some airports are simply better than others for holiday travelers.

To help you find the right ones, MarketWatch conducted a survey of 3,000 Americans to learn more about their holiday travel habits. The team found that 61 percent of respondents plan to travel this holiday season, 36 percent intend to fly for the holidays, and they expect to pay an average of $1,869 on holiday air travel.

As for where they should fly out of, the team also analyzed fare and flight disruption data for more than 200 airports based on the 2023 holiday season.

After crunching the numbers, MarketWatch named Harry Reid International Airport, located outside of Las Vegas, as the best airport for holiday travel. It won out thanks to its lower fares, which run about $100 less than the average major airport ($382). The Orlando airport in Florida came in second thanks to its cheaper-than-average fares but lost out on the top spot due to its slightly higher rate of delays. These airports were joined by Tampa International in Florida in third, followed by LaGuardia in New York, Hartsfield-Jackson Atlanta International Airport in Georgia, Minneapolis–Saint Paul International Airport in Minnesota, Phoenix Sky Harbor International Airport in Arizona, Nashville International in Tennessee, Chicago O’Hare International in Illinois, and Salt Lake City International in Utah rounding out the top 10.

There is, however, good news for travelers who need to fly out of other airports around the nation.

“In general, holiday flight cancellations decreased in 2023 compared to 2022. Only about 0.3 percent of flights were canceled in November 2023 and December 2023, down from 3.33 percent in 2022, with notable improvements in the final two weeks of the year,”

As for where you may want to avoid, the findings noted that San Francisco International in California was its lowest-ranked airport due to its unusually high fares, while the Seattle/Tacoma International Airport in Washington experienced the most weather-related delays. And Chicago Midway International is one particular airport to try your best to avoid, as it had a higher rate of weather cancellations in November 2023 and December 2023 than “the next four airports combined,” the findings noted. “Chicago Midway has had a rough stretch lately — as it was also ranked the second-most stressful major airport in another recent review.”

The survey found that nearly all Americans surveyed (96 percent) who said they plan to fly this holiday season have concerns about their trip, including 70 percent stating specifically they have fears about delays.

The MarketWatch research team also noted it might be a good idea to avoid Spirit Airlines, which experienced the most delays of any airline during the 2023 season, with 27 percent of its flights getting delayed. However, JetBlue Airways followed closely behind, with 26 percent of its flights also experiencing delays. So, either do your best to make alternative arrangements or learn a few anxiety-reducing tips to help you manage stress while you travel so you’re ready to tackle whatever holiday travel pains come your way.

Travel Tip adapted from travelandleisure.comⁱⁱⁱ

Our mailing address is:

Ballentine Capital Advisors
15 Halton Green Way
Greenville, SC 29607

Sources:

Disclosure:

Ballentine Capital Advisors is a registered investment adviser. The advisory services of Ballentine Capital Advisors are not made available in any jurisdiction in which Ballentine Capital Advisors is not registered or is otherwise exempt from registration.

Please review Ballentine Capital Advisors Disclosure Brochure for a complete explanation of fees. Investing involves risks. Investments are not guaranteed and may lose value.

This material is prepared by Ballentine Capital Advisors for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation or any particular security, strategy, or investment product.

No representation is being made that any account will or is likely to achieve future profits or losses similar to those shown. You should not assume that investment decisions we make in the future will be profitable or equal the investment performance of the past. Past performance does not indicate future results.

Advisory services through Ballentine Capital Advisors, Inc.

ⁱhttps://www.golfdigest.com/story/close-off-your-setup-for-longer-drives

ⁱⁱhttps://www.foodnetwork.com/recipes/classic-chicken-pot-pie-12724288

ⁱⁱⁱhttps://www.travelandleisure.com/how-to-avoid-wrinkles-when-packing-8656158