‘Kennedy Saves The World’ host Kennedy and National Review columnist Caroline Downey analyze the Trump-Harris ‘Money Making’ debate.
When people are faced with uncertainty, they find it difficult to make decisions. It’s called the “splitting effect” and financial experts say this applies to elections.
It is interesting to note that people feel inclined to give up even if they make the same decision, regardless of what happens next.
“As a result, they may continue with the status quo, or ‘do nothing different’ until the uncertainty is resolved,” Michael Liersch, head of advisory and planning at Wells Fargo, told FOX Business.
The election is a good example, given that it is a time of extreme uncertainty, he noted.
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“According to research on the division effect, people may delay major decisions – for example, the decision to buy or sell something – until they know the results of the election even if they will move forward regardless of which candidate wins,” Liersch. said. “The bottom line: people may feel the need to know the outcome in order to take action.”
A house for sale in the Capitol Hill neighborhood of Washington, DC, US, on Tuesday, July 30, 2024. (Photographer: Tierney L. Cross/Bloomberg via Getty Images / Getty Images)
The issue is “uncertainty in and of itself can cause paralysis of decision,” he continued.
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Liersch explained that making decisions when you know the future consequences feels easier.
AutoNation Dealer in Las Vegas, Nevada, US, Tuesday, July 18, 2023. AutoNation Inc. is scheduled to release earnings figures on July 21. Photographer: Bridget Bennett/Bloomberg via Getty Images (Bridget Bennett/Bloomberg via Getty Images/Getty Images)
While fear of the unknown can play a role in this thought process, Liersch said “the biggest driver is really the difficulty of finding reasons for a decision without knowing the outcome,” he continued.
To overcome this, she suggests sitting down with a trusted spouse, partner, family member, friend or professional and focusing on your goals.
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Republican presidential nominee, former US President Donald Trump and Democratic presidential nominee, US Vice President Kamala Harris participate in a presidential debate hosted by ABC in Philadelphia, Pennsylvania, US, on September 10, 2024 at ac. (REUTERS/Brian Snyder/Reuters)
“What decision will help you achieve? And run the conditions. If candidate X wins, what decision should you make?” Liersch said. “If candidate Y won, what decision would you make? That way, you can “stress test” whether the outcome will really affect your financial goals, and the decisions involved in reaching them.”
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