It's impossible to discuss politics without broaching some emotions. Let’s face it, there are several issues that fill our minds with worry as we prepare ourselves for who we will vote for in the coming election:
The past two Presidents differed greatly around their domestic energy policy. Donald Trump has repeatedly commented "Drill, baby drill..." while Joe Biden pushed for more Green Energy investment after winning the 2020 election. Here are some article headlines from each of those Presidential election years:
Based on these headlines voters and investors were reading at the time, one might assume that looking back we can decipher which President was better for the US Energy Sector and the Clean Energy Sector respectively.
Had an investor changed his / her portfolio around based on who won the White House, they probably committed great harm to their wealth as shown above. Going "all in" on energy under the Trump administration turned $1 into just $0.48 by October 31, 2020. Then turning around and going "all in" on clean energy after Biden's win in November 2020 turned that $0.48 into an even smaller $0.37 at the end of September 2024. Mind you, the S&P 500 index produced strong positive returns under both administrations.
Let's say that an investor instead decided to ignore who was residing at 1600 Pennsylvania Avenue and simply bet on America...
As voters and citizens, it is OK to be concerned and paying attention to the upcoming elections. Fortunately, as investors.... we should be comforted by the fact that the individuals who founded this Nation nearly 250 years ago designed a system where no one individual or party can ever gain enough control to ruin it.... because they just might. So if you choose to alter your portfolio after the election results on November 6th, just remember that you aren't betting against the next President nor political party in control. Instead, you are betting against America and that has been a losing bet since 1776.
Disclaimer: The content of this blog is for informational purposes only and does not constitute financial, legal, or investment advice. The performance results presented include hypothetical and model performance data, which do not reflect actual client accounts. Hypothetical performance is inherently limited and created with the benefit of hindsight. The performance figures shown do not include the deduction of advisory fees, which would reduce overall returns.
All investments carry risk, including the potential loss of principal. Past performance is not indicative of future results, and there is no guarantee that any specific investment strategy will be profitable in the future. Decisions based on political or economic events, including market timing strategies, may involve increased risk and lead to losses. For personalized advice tailored to your financial situation, please consult with a qualified financial advisor.
Meredith Wealth Planning and its affiliates are not responsible for any decisions made based on this information.
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