Hello everyone! As you might expect, most of our client’s reside in the hotly contested swing state of Florida and are getting bombarded with political ads from both sides so I thought I’d share some points from a piece put out by the investment firm Invesco titled: 2020 US Presidential Election: 10 Truths No Matter Who Wins. It’s a little long so I have included the link below if you would like to dive further into their thoughts but here are the 10 bullet points:
- Markets have performed well under both parties.
- Investors are better off staying fully invested.
- We do not radically re-engineer the US economy
- The historical narrative is not as you remember it.
- Signature legislative accomplishments are infrequent, and the impact is not always as expected.
- Predictions tend to be wrong
- Monetary policy matters more.
- It’s okay if you don’t like the President. The market doesn’t care.
- No, this is not the most vitriolic election.
- Don’t confuse partisan politics with market analysis and keep your eye on one indicator.
Some of these points I find more important than others, but one nugget of truth really stood out for me and you can find it on page 4 of the paper:
$10,000 invested in the equities in 1896 would have grown to over $7 million, but if one were only invested in either Republican or Democratic presidencies, one never came close to reaching just $1 million.
The age-old truth prevails, it’s time in the market, not timing the market. At DCH Wealth Management, our overriding mission is to build each of our clients a personalized plan crafted to meet their most cherished long-term goals no matter what the current noise around the market is.
I’ll leave you with a quote from the great Peter Lynch: “If you spend more than 13 minutes analyzing economic and market forecasts, you’ve wasted 10 minutes”. Love that one! As always, we are here to talk with you about any concerns you may have so please don’t hesitate to give us a call, and be of good cheer for depending on which side you come down on, this too shall pass.
David R Henderson
This is being provided for informational purposes only, and should not be construed as a recommendation to buy or sell any specific securities. Past performance is no guarantee of future results, and all investing involves risk. Index returns shown are not reflective of actual performance nor reflect fees and expenses applicable to investing. One cannot invest directly in an index. DCH Wealth Management, nor any of its members are tax accountants or legal attorneys, and do not provide tax or legal advice. For tax or legal advice, you should consult your tax or legal professional. The views expressed are those of DCH Wealth Management and do not necessarily reflect the views of Mutual Advisors, LLC or any of its affiliates. Investment advisory services offered through Mutual Advisors, LLC DBA DCH Wealth Management, a SEC registered investment adviser. Securities offered through Mutual Securities, Inc., member FINRA/SIPC. Mutual Securities, Inc. and Mutual Advisors, LLC are affiliated companies.