With less than two months until the presidential election, the policy platforms for President Donald Trump and Vice President Kamala Harris are gradually forming. Through speeches and debates, each candidate is laying out what they stand for and how they would change existing policies. For investors, perhaps the most scrutinized area is taxes, and there are concerns over how changes to tax rates could impact both Wall Street and Main Street. How can investors maintain perspective as we approach November 5?

As everyone settles into their post-Labor Day routines, it’s a good time for investors to reflect on markets and review their financial plans for the rest of the year. August began with the sharpest market declines in two years, but major indices have rebounded with the S&P 500 only a fraction of a percent from its all-time high.

The Federal Reserve is widely expected to announce its first rate cut at its September 18 meeting, which has caused interest rates to stabilize in recent weeks. Inflation remains on a downward trajectory and the broader economy remains strong. So while September is beginning with additional market uncertainty, it’s important for investors to maintain perspective.

Financial markets have been resilient in recent weeks, almost fully recovering from the swings experienced at the beginning of August. Major stock market indices are once again approaching all-time highs, with the S&P 500 gaining 19.2% year-to-date with dividends, less than half of one percent below its peak. This upward trend has been fueled by Fed Chair Powell’s recent speech that laid the groundwork for a September rate cut. The past month is yet another reminder that market volatility is both natural and unavoidable. Rather than fixating on day-to-day market headlines, it’s usually better to invest based on longer-run trends.

With the presidential election just two and a half months away, the candidates’ economic policy platforms are only now beginning to take shape. This late unveiling has some investors concerned about how each policy platform might impact the economy and financial markets.

As with all elections, the perceived stakes are high, and with greater political polarization in recent years, emotions are running as hot as ever. In this challenging environment, what do investors need to know in the months ahead to prevent their political concerns from negatively affecting their financial plans?

Financial markets have felt more fragile recently with investors concerned about the economy, the possibility that the Fed may be behind on cutting rates, and some disappointing tech earnings. Ironically, despite the market volatility last week, major indices were mostly unchanged from Monday to Friday. While they are down from their recent all-time highs, and there is heightened market uncertainty, the S&P 500, Nasdaq, and Dow are still up 13%, 12%, and 6% with dividends this year. This is a reminder that while market swings are never pleasant, looking past short-term volatility is the best way for investors to stay focused on their goals.