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Markets rally around Election Day, and you may qualify for PPP loan forgiveness: Here's how the headlines could affect your money

Markets rallied a day ahead of the presidential elections after a rough October.

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A preelection rally follows a rough week for markets, Election Day is Tuesday, and you may be eligible for PPP loan forgiveness if you borrowed $50,000 or less. Here's how the headlines could affect your money. 

After losses, markets try to rebound

Last week, the Dow and S&P posted their biggest weekly losses since March following news about the Senate adjourning without stimulus talks and rising Covid numbers. Even so, Monday morning trading showed signs of a preelection rally after a grim October. 

Preelection jitters

Election Day is Tuesday. Markets tend to be volatile in the months surrounding an election but they usually even out not long afterwards. 

Fun fact: Ever since President Harry Truman's terms (1945-1953), all U.S. presidents left office with the S&P higher than it had been when they began, with only two exceptions — Richard Nixon and George W. Bush. That's why it's a good idea to stay the course and stay focused on the long term.

You may be eligible for PPP loan forgiveness

The Small Business Association and Treasury Department recently issued Form 3508S for PPP (Paycheck Protection Program) recipients to receive partial loan forgiveness if they borrowed $50,000 or less. But some experts strongly advise people to wait for more details before filing, as much uncertainty remains about whether you'd be taxed on forgiven loans and whether you'd be allowed to deduct expenses.

Words you've heard: Paycheck Protection Program (PPP)

The Paycheck Protection Program (PPP) is a "loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis," according to the website of the Small Business Association (SBA), which administers the loans. Applications ended August 8, but future stimulus plans might restart the program.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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