You may have heard that a presidential election is now days away. However, what you might not be aware of is that 45% of consumers with $100,000 or more investable assets expect to make changes to their investments due to the election, according to a recent Hartford Funds study.
That is an alarming number.
Second-guessing your investment strategy is natural, especially with an election on the horizon. Emotions are running high as many are divided about what may happen to the financial markets. Even after the election is over there will be a new occurrence that pops up that will be cause for concern.
That makes this a great time to remember that investing involves risks, and investment decisions should be based on YOUR own goals, YOUR time horizon, and YOUR tolerance for risk. If you’re concerned that the election result may change one of these key factors, perhaps it’s time to review your portfolio.
Think of it this way. We as investors can not control the policies, we can only control our plan. Imagine if there was a pending rules change in a professional sports league. Teams wouldn’t sit around worrying about what the rule change will be. They would wait for rule change to happen and then adjust accordingly. Want a different cliché? We can’t control the wind, we can only adjust our sails. With that being said, it can be difficult to mind one’s emotions when it comes to investing. If the election result introduces new economic factors, make sure you speak with your financial professional first and avoid decisions based on an emotional response to a current event.