Today’s Practical Planning Tip will cover my outlook for the year, continuing on the same theme from the past few days.
Today’s tip for 2024 is to AVOID mixing politics and your portfolio: This is an especially important point with a presidential election coming up in November. There is nothing that triggers people more than politics. I’ve had friends and acquaintances make drastic decisions based on a presidential election. One friend told me he was going to liquidate his investments and leave the country if Obama won the presidency back in 2008. Obama won and my friend actually left the country! I know others who liquidated their entire portfolio when Trump won the election in 2016. In both situations, the market skyrocketed while each President was in office. While certain industries may benefit based on who controls Washington, the market doesn’t care who is in office. It will remain resilient over time. The most important thing to remember when it comes to investing and politics is not to mix the two!
It's far better to turn off the political commentators and block politicians on social media. It will allow you to more easily stick with your investment strategy and make money over time.