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Investing and Presidential Elections: Advice for Managing Anxiety
Analysis of S&P 500 performance under different presidencies and advice for managing election-related investment anxieties.
English
United States
PoliticsUs PoliticsLabour MarketLifestyleFinanceMarketInvestingAnxiety
Carson Research GroupBettermentCnbc
Dan EganRyan Detrick
- What is the main argument presented regarding the impact of presidential elections on investment decisions?
- The article emphasizes that withdrawing investments based on political affiliation is a losing strategy. Staying invested consistently, regardless of the president, would have resulted in a significantly larger return of \$1.7 million.
- What are three strategies suggested to avoid impulsive investment decisions driven by election-related anxiety?
- To avoid impulsive decisions, the article suggests bouncing ideas off a confidant, waiting a day or two before acting, and making incremental adjustments to investment strategies rather than drastic changes.
- What advice do financial advisors provide for handling short-term market fluctuations and election-related anxieties?
- Financial advisors recommend ignoring short-term market fluctuations and maintaining long-term investment plans. The article suggests strategies to manage investment anxiety, such as delaying decisions, seeking trusted advice, and making gradual changes.
- What were the returns on a hypothetical \$1,000 investment in the S&P 500 under Republican and Democratic presidencies since 1953?
- Historically, investing in the S&P 500 during Republican presidencies would have yielded around \$30,000, while investing only during Democratic presidencies would have resulted in approximately \$60,000.
- What percentage of investors expressed anxiety about the election's impact on their finances, and what percentage planned to change their investments based on the outcome?
- Approximately 57% of investors express anxiety about the presidential election's impact on their finances, with about 40% planning investment changes based on the outcome.