 For this month’s Reality Check, we are revisiting a chart that we recently shared in our Quarterly Newsletter. We felt that it was worth another view to keep you disciplined and focused on the long-term regardless of the outcome of the election.
If you any questions about this topic or wish to receive our Reality Check emails, please don't hesitate to contact us. For this month’s Reality Check, we offer Nick Murray’s timely and insightful commentary from his most recent newsletter to Advisors. The “Client Corner” portion of his newsletters is directed to individual investors and cover a vast array of topics. His writing style is always very entertaining and I hope you enjoy this month’s piece.
Due to copyright restrictions, this cannot be made available through our website. In the order to receive a copy of this piece, you will need to contact us directly here. If you any questions about this topic or wish to receive our Reality Check emails, please don't hesitate to contact us. In just a few short weeks, Americans will head to the polls to elect the next President of the United States. While the outcome is unknown, one thing is for certain: There will be a steady stream of opinions from pundits and prognosticators about how the election will impact the stock market. As explained in the below graph from Dimensional, investors would be well-served to avoid the temptation to make significant changes to a long-term investment plan based on upon these sorts of predictions.  Additionally, this short 4 minute video from Vanguard aids investors in shifting their focus from the short term impact of the election to focusing on the long term. Decades of historical data tell us that presidential elections typically don't have a long-term effect on market performance. This data does not suggest an obvious pattern of long-term stock market performance based upon which party holds the Oval Office. The key takeaway here is that over the long run, the market has provided substantial returns regardless of who controlled the executive branch.
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