It's impossible to discuss politics without broaching some emotions. Let’s face it, there are several issues that fill our minds with worry as we prepare ourselves for who we will vote for in the coming election:
The past two Presidents differed greatly around their domestic energy policy. Donald Trump has repeatedly commented "Drill, baby drill..." while Joe Biden pushed for more Green Energy investment after winning the 2020 election. Here are some article headlines from each of those Presidential election years:
Based on these headlines voters and investors were reading at the time, one might assume that looking back we can decipher which President was better for the US Energy Sector and the Clean Energy Sector respectively.
Had an investor changed his / her portfolio around based on who won the White House, they probably committed great harm to their wealth as shown above. Going "all in" on energy under the Trump administration turned $1 into just $0.48 by October 31, 2020. Then turning around and going "all in" on clean energy after Biden's win in November 2020 turned that $0.48 into an even smaller $0.37 at the end of September 2024. Mind you, the S&P 500 index produced strong positive returns under both administrations.
Let's say that an investor instead decided to ignore who was residing at 1600 Pennsylvania Avenue and simply bet on America...
As voters and citizens, it is OK to be concerned and paying attention to the upcoming elections. Fortunately, as investors.... we should be comforted by the fact that the individuals who founded this Nation nearly 250 years ago designed a system where no one individual or party can ever gain enough control to ruin it.... because they just might. So if you choose to alter your portfolio after the election results on November 6th, just remember that you aren't betting against the next President nor political party in control. Instead, you are betting against America and that has been a losing bet since 1776.
This content is for informational and educational purposes only and should not be construed as personalized investment, tax, or legal advice. All opinions expressed are as of the date of publication and are subject to change without notice. Any historical, hypothetical, or backtested performance data referenced herein has inherent limitations: it does not represent actual client accounts or actual trading, is not reduced by advisory fees or other expenses that would apply to a real account unless stated otherwise, assumes reinvestment of dividends and other earnings, and was calculated with the benefit of hindsight. Actual results will vary, and past performance does not guarantee future results. The value of investments will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. References to specific securities, funds, or investment strategies are for illustrative and educational purposes only and do not constitute a recommendation to buy or sell any security. Not all recommendations will be profitable. Any testimonials or client comments referenced are not representative of the experience of all clients, are not indicative of future performance, and no compensation was provided in exchange for such statements. Information has been obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. Nothing herein is a solicitation or offer to buy or sell any security. Meredith Wealth Planning, LLC is an SEC-registered investment adviser; registration does not imply a certain level of skill or training. For a full description of our services, fees, and any conflicts of interest, please review our Form ADV Part 2A and Form CRS at meredithwealth.com/disclosures.
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