Take a Deep Breath, The Election is Almost Over

With less than two weeks to go until November 8th, election anxiety is a real thing for many Americans. For those of you affected I can’t necessarily relieve all of your stress, but I do feel qualified to at least calm you down as regards your investments and long-term plan. In fact, you heard it from me several months ago here:

“U.S. politics affect our emotions and so we place an outsize importance on how they affect our portfolio. This is not to say government policies can’t have a significant impact on markets over the long-term, but that short-term politics do have an extra large influence on how we think about our investments. In reality, they are just another source of noise and a loud one at that.”

Nevertheless, I’ve collected a few other sober-minded, objective resources to hammer this point home. I encourage you to read through them if you’re feeling stressed and perhaps you can at least remove the financial anxiety from political anxiety.

First, here’s a short video that essentially outlines how stock and bond markets have historically reacted to elections (essentially there is potential for increased short-term volatility with little evidence that there are any long-term impacts regardless of the winning party).

Second, here’s a short piece that also emphasizes that there are minimal short-term effects and no long-term effects to a well-diversified portfolio due to an election.

Take a deep breath. You can’t control the outcome of the election (outside of your vote), but it also isn’t going to affect your portfolio in the long-run.

And just in case that still isn’t enough, here’s a gif of my dog begging for dinner (even though he ate just 30 minutes ago) to serve as a brief respite from your news feed.

rico