Update for August 2020
Election 2020...what is an investor to do?
With the U.S. election less than three months away, investors have begun bracing themselves for what is sure to be another vitriolic presidential campaign. Commentators across all media outlets are hyping this as a watershed event that will reshape the country for decades to come. This type of rhetoric can plant fear in the minds of investors as many of these “experts” are recommending dramatic portfolio changes based on the outcome. Unfortunately, these decisions can wreak havoc to an investor’s portfolio as the emotional response it can lead to, more often than not, will result in a poor long-term investment decision.
Now to be fair, the upcoming election is very important. After all, we are still facing a global pandemic with an uncertain outcome. Racial tensions are high, and the country is extremely divided politically. Tensions abroad are escalating. Most investors remain perplexed by the meteoric rise of the stock market since the March 23rd low. The sky-high valuations many stocks are trading at may be completely disconnected from reality if a “V” shaped recovery isn’t in the cards. Thus, regardless of your view of the economy or political affiliation, nearly everyone would agree that we are in for a bumpy ride leading up to November. However, while the outcome is certainly important in terms of the direction of where our country will be headed, we implore you to heed this advice.
Breaking the Chain
As we begin the second half of 2020, it is evident that we will continue to face many obstacles surrounding Covid-19. It is tough to comprehend how much has changed since early March and how different our day-to-day lives are now, compared to then. While the virus has impacted almost everyone in the world, it has been especially difficult for teenagers and young adults who are still in school and/or entering the workforce...
Seriously? Why would anyone willingly choose to run UP a hill? The sudden burst of extra effort, a shortened stride and quickened cadence, leaning forward with your breath and heart rate accelerating. Why run hills when you can take an easier route, staying flat or avoiding running altogether?