Investors have faced a lot of uncertainty so far this year, particularly due to the pandemic, and it is not over yet. One reason is that Presidential election years, by definition, cause some concern about what might come next. We would like to reassure you by mentioning that research¹, from 1933 to the present, indicates that capital market returns have stayed strong over the long-term—regardless of the partisan makeup of Washington.
That said, we would also like to offer you some tips to help sustain you throughout this Presidential election season.
What is an investor to do? Consider these tips:
- If you are feeling stressed, the first thing to do is to try to identify the source of your unease.
- If concerns about the outcome of the election are weighing on your mind, try to stay calm–using whatever strategies to do so that work best for you.
- Try to avoid TV media, reminding yourself that what it sells is fear, greed and loss—none of which are components for investing success.
- Try to avoid focusing on polls.
- Keep in mind that research shows that investors who stay the course during an election year end up with more money than those who make changes—especially if funds are moved to cash.
- Finally, take note that since each state regulates its own voting procedures, we may not know the outcome of the November 3rd election until more than a month passes. This delay does not mean that there is fraud; it means that not all states require the immediate counting of mail-in ballots.
To further sharpen your perspective about Your Money and the Election, please mark your calendars for Thursday, October 29th, noon to 1 p.m. We are hosting a virtual presentation about the broader implications of COVID 19 for Geopolitics, American politics, and the Global Economy. This is a non-partisan presentation. Stay tuned for more details!
In the meantime, remember to pick up the phone or email us to let us know if a conversation would be helpful. We can be reached at: 610-687-3515 or by email.
Please share this webpage with your network, to help them as they, too, navigate the shifting sands of current events.
¹ Capital Group, 2020