• Skip to primary navigation
  • Skip to main content
  • Skip to footer
Schedule Appointment Client Portal Login

Wisdom Wealth Strategies

Your Retirement Financial Advisors Denver Colorado

  • Home
  • About us
  • Financial Planning
  • Investment Management
  • Tax Planning
  • In The Media
  • Blog & Social
  • Contact Us

Calming Reflections on Presidential Elections

October 29, 2020 by Wisdom Wealth Strategies
Blog & Social Media   |   Financial Planning   |   Calming Reflections on Presidential Elections

Calming Reflections on Presidential Elections

In the run-up to the U.S. presidential election, you’ve been hit by enough breaking news to propel you well into 2021. Predictions abound on who will prevail, and what will happen to our political, social, and economic landscape as a (supposedly) direct result.

Come what may, the results will undoubtedly be attention-grabbing and action-packed. Social media and the popular press will see to that, as they feed on – and are fed by – our fascination with things that break.

To counter all the excitement, we offer three calming insights:

  • Cause and effect are rarely as direct as we might hope or fear. Please apply this point to any temptation you may be feeling to alter your investments because “X” has just happened, or in case “Y” seems about to. Before, during, and after the election cycle, pundits will be proclaiming they can predict the financial fallout from an election characterized by such stark contrasts. At least in terms of tomorrow’s market prices, they do not know. They cannot know. There are simply far too many interacting interests to make the call.
  • It’s much easier to explain an outcome than to predict it. In this Forbes column, the author describes how scientists have detailed models for explaining why volcanoes occur. But they still cannot predict each eruption. The same can be said for financial markets. We have excellent models for explaining a market’s overall factors and forces. But our ability to predict its individual events or specific moves remains as elusive as ever.
  • Elections come and go. Your investments last a lifetime. As U.S. voters, we have the opportunity to select our next president every four years. As investors, we are best served by measuring the balance of power in our portfolio across decades rather than years. As Dimensional Fund Advisors has demonstrated in this excellent illustration, “for nearly 100 years of US presidential terms [the data] shows a consistent upward march for US equities regardless of the administration in place.”

In other words, no matter which political party is in power, your best chance for achieving your personal financial goals remains the same: Continue to give your investments ample time and space to benefit from the market forces just described. As we move together through the breaking news yet to unfold, we hope you vote according to your values, and heed this valuable advice about your lifetime investments. Stay the course!

 

wisdom wealth strategies

 

Andrea L. Blackwelder, CFP®, ChFC, CDFA® and Joseph D. Clemens, CFP®, EA are the founders and partners of Wisdom Wealth Strategies. Their shared passion is simple: to bring financial empowerment, understanding, and peace-of mind to people who wish to improve their financial future, build wealth for their families, and achieve financial independence. Click here to find out more about how you can work with the Denver Financial Advisors at Wisdom Wealth Strategies.

Filed Under: Financial Planning, Investing, News

Interested in Working Together?

We’d love to learn more about your financial needs and answer any questions you have about our practice.

Request a Consultation

Footer

Certified Financial Planner

Social

See what we’re up to by following along on social media.

  • Facebook
  • LinkedIn
  • Twitter

Contact

Get directions
(720) 314-8009

Newsletter

Stay up to date by subscribing to our newsletter.

Copyright © 2021 Wisdom Wealth Strategies, LLC. All Rights Reserved.
Wisdom Wealth Strategies, LLC is a registered investment advisor offering advisory services in the states of Colorado and California, and in other jurisdictions where exempted.


Site Crafted by HUMAN MADE