It has been an unusual election year in that a concurrent story has dominated the headlines thus far. Nonetheless, as you are all aware the 2020 election is right around the corner. As such, we know the campaigns will be ramping up quickly and will be, by design, targeting our emotions. As such, I wanted to share some important points to consider:
- Market volatility over the short term, including during election season, is largely driven by emotions and randomness
- The overall economy influences markets much more than a certain political party in power
- Political parties and the media will bombard you with partial truths and tag lines to get you emotionally charged (so you will tune in)
- Investment decisions based on news headlines, emotions or “expert” forecasts can be ill advised
- Recognize the difference between luck and process
- Guessing the right outcome is luck
- Patience and discipline are fruits of process
- Process transcends impulse in uncertain scenarios (like an election)
- Vote with your heart and energy, not with your portfolio
As always, we are here to help should you wish to discuss this or any other matter.