Why You Shouldn’t Let Election Hype Affect Your Investment Decisions
I want to wade into the minefield of politics and talk about the upcoming election. But, before you start worrying about how it might impact your finances, I’m here to tell you why it’s better not to stress about it.
I’ve been in this business for nearly 40 years, and I’ve seen a lot of elections. I’ve also seen a lot of hype. The media loves to ramp up anxiety about one candidate versus the other, spinning narratives designed to keep you glued to the screen.
Remember, their goal is to make money—they want you to stick around through the commercials because that’s how they profit.
So, it’s important to put the hype aside and focus on what really matters.
Why the Market Doesn’t Care as Much as You Think
Here’s the truth: there’s not a huge difference between candidates when it comes to overall spending. They might allocate funds differently—one side might push for financial policies, the other for green initiatives—but at the end of the day, they’re both spending. The market knows this. It adjusts and finds its balance.
If you look back, the market did just fine during Trump’s first term—until COVID hit. Then, as Biden took over, the market recovered and performed well as we moved out of the pandemic.
History shows us that the market has a way of equalizing regardless of who’s in charge.
What This Means for You
The media may spin stories that stir up fear and uncertainty, but the market doesn’t react as dramatically long-term. Whether it’s Trump, Biden, or even Harris in the future, the market adapts. You might see financials do better under Trump, or green stocks rise with Harris. But that doesn’t mean you need to react.
Stay the Course The best strategy is to stay in the market.
Don’t get caught up in trying to predict which sectors to lean into or when to buy or sell. Historically, riding through the electoral process and staying invested has always worked out better. The market has a natural way of finding its equilibrium and generating the returns we’re all looking for.
So, take a deep breath. There’s a lot of noise out there and a lot of emotions flying around, but from an economic perspective, don’t let it affect you.
Stay invested, and trust the process—it's always worked out that way in the past.