The presidential election and its impact on the markets loom large among investors' concerns. Mike Townsend tapped the resources of Schwab's Center for Financial Research to answer client questions, including the role of third-party candidates; what happens if either of the main candidates leaves the race; and how the markets, as well as individual sectors, typically perform in the run-up to the election and immediately afterward. Mike also looks at historical market correlations with election outcomes, explains why the Congressional elections may be more important to the markets than the presidential race, and offers key takeaways for how to keep emotions in check and approach this election season.

In other Washington updates, Mike discusses the possibility of a government shutdown as the federal budget remains unfunded more than five months after the start of this fiscal year. He also looks at two bills that seem to be on hold, the $95 billion foreign aid bill and the tax bill that would expand the Child Tax Credit and extend some business tax breaks. And he offers an update on two rules approved by the SEC, one requiring public companies to offer more information to investors about risks they could encounter from climate change and another that brings more transparency to the equities-trading process.

WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.

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