I woke up this morning with a little pep in my step. Not because of any particular election outcome, but because it’s finally over!
Whether you’re on Team Blue, Team Red, or some shade of purple, I think we can all agree that it’ll be nice to get a break from the lawn signs, commercials, texts, and emails about the election.
So, now that it’s over, what’s next?
Democrats have won control of both the House and Senate, setting up a divided government for the remaining two years of President Trump’s term.
Naturally, there will be plenty of opinions about what this means for the economy and stock market, and no shortage of experts looking to grab the next headline.
Here’s how we’re looking at it.
Elections matter. Government policies influence taxes, regulations, and economic growth. But there’s an important difference between political headlines and economic consequences.
For example, we’re watching how the election could affect the AI infrastructure buildout. Several states are considering tighter restrictions on new data centers over electricity costs, water usage, and infrastructure demands. State and local elections may matter more for these projects than the national election because local officials often control permitting.
At first glance, that sounds like bad news for AI. For some companies, it could be.
But consider the other side. If new construction becomes more difficult, existing data centers and computing capacity could become more valuable. The same policy that hurts one company could benefit another.
That’s the law of supply and demand at work.
That’s why we focus on businesses, not headlines.
We spend a great deal of time evaluating the companies we own, their financial strength, competitive advantages, and ability to generate cash flow. If government policy changes those fundamentals, we’ll reassess and adjust where appropriate.
What we won’t do is trade simply because one party gained or lost control of Washington. I’m already not a fan of politics, so I certainly don’t want to add it to our clients’ portfolios.
There will be plenty of political noise in the months ahead. Our job is to separate what matters to your investments from what makes good headlines.
Our focus remains unchanged: owning quality investments at reasonable valuations, managing risk, and keeping your portfolio aligned with your long-term goals.
As always, if you have any questions or concerns, we’re just a phone call away.
Talk soon,
Ricardo Ferreira
Founding Partner, Portfolio Manager
Ricardo J. Ferreira is the Portfolio Manager at Paragon Wealth, a firm he co-founded with Charlie McNamara, III, and Phil Rosenau. Drawing on his passion for finance and a talent for solving complex financial challenges, Ricardo leads the firm’s investment strategies, ensuring clients receive personalized and forward-thinking solutions.
A decorated U.S. Navy Veteran, Ricardo served at N.A.E.S. Lakehurst and aboard the USS George Washington, where he worked in aviation support. After his military service, Ricardo studied economics at Liberty University and began his financial career at Prudential Financial, where he met his future partners, Charlie and Phil.
Outside of work, Ricardo enjoys spending time with his family. He is married to Tina, owner of Main Street Accounting & Tax, and they have two children. Active in his community, Ricardo participates in various local events and serves on the finance council at St. Jude Parish in Chalfont. A passionate runner, he can often be found competing in local 5k and trail races on the weekends.
Ricardo J. Ferreira is solely an investment advisor representative of Paragon Wealth Management, and not affiliated with LPL Financial.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss.
Advisors associated with Paragon Wealth Management may be either (1) registered representatives with, and securities offered through LPL Financial, Member FINRA/SIPC, and investment advisor representatives of Great Valley Advisor Group, or (2) solely investment advisor representatives of Great Valley Advisor Group, and not affiliated with LPL Financial. Investment advice offered through Great Valley Advisor Group, a registered investment advisor. Great Valley Advisor Group and Paragon Wealth Management are separate entities from LPL Financial.