Election SurprisesFebruary 5, 2020 -
Categorized in: IAG News
The first official step toward this fall’s elections is in the past. On Monday real voters finally had their first opportunity to share their support for candidates by literally voting with their feet at caucuses across Iowa and 87 satellite locations around the world.
Unlike billions of people around the world, we are blessed with the freedom to participate in selecting our country’s leaders. However, a republican form of government can be quite messy.
Monday’s mess in tallying caucus results using a brand-new smartphone app is just one of many surprises that will unfold in the coming months.
Individual candidates will surge and falter. Controversial statements will be criticized and defended. Buttons will be pushed.
Candidates, political action committees, and political parties will spend billions of dollars to bend your mind to their way of thinking and to motivate you to get to the polls in November so they can retain or obtain power over you.
Financial markets are not immune to politicians’ siren song. While past performance cannot predict future results, presidential election years have historically seen increased bouts of volatility during the primary season.
As you psychologically prepare yourself for what is likely to be a divisive and hyperbolic election season, be sure to separate your feelings about politics from your financial plan and investment portfolio. Overreacting to short-term events is one of the primary culprits in people failing to reach their stated financial goals.
The victory or loss of one political candidate will be a footnote in the entirety of your financial life. Your personal headline will be rooted in how much you save, how much you spend, and how well you develop and execute your long-term plans in a short-term world.
Quote of the week: Joseph Stalin: “It is enough that the people know there was an election. The people who cast the votes decide nothing. The people who count the votes decide everything.”
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