Emotions are running high as approach the upcoming 2020 U.S. Presidential Election. In our previous post, titled Politics & Investing, we reviewed market performance and economic growth (GDP) data by political administration as well as some timely behavioral investing graphics. We encourage you to turn down the noise so that emotional decisions don't begin to impact your investment portfolio or financial plan. We empathize, this is a contentious election as we live through social polarization, economic recession and a pandemic.
The Chart below illustrates Nominal Returns of a 60/40 balanced portfolio (stocks/bonds) over the past 150+ years by the President's party affiliation. As you will see, different administrations yet similar returns. We agree that policies may dramatically differ but we advise to make decisions based on research and facts rather than emotions.