Investing Through Elections with Evidence-Based Strategies | AWM Insights #188

AWM Insights Financial and Investment News

Presidential elections and financial markets have a nuanced relationship. All the media coverage and speculation around elections creates a significant panic and worry that can sway investor emotions.

However, the historical data does not support making investment decisions based on the election outcome. Election years have shown no signs of differing performance from normal years.

Financial markets are highly complex, and even though elections are important to policy, they are a single piece in a sea of factors that impact markets.

Focusing on long-term financial goals and adhering to disciplined investment principles creates far more successful opportunities and outcomes for investors when compared to playing the election guessing game.

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Episode Highlights

• 00:00 Intro
• 01:18 Discussion on the election as a significant behavioral event influencing investor emotions.
• 03:03 Insight into financial markets' processing of election outcomes without political bias.
• 04:38 Emphasis on the importance of evidence-based investing over emotional decision-making.
• 05:55 Historical market performance analysis showing resilience despite political changes.
• 07:16 Discussion on the nuanced effects of presidential policies on markets.
• 08:17 Conclusion and mention of future deeper dive into the episode's topic.