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Barron's: don't mix investing and politics.

But... everything is political. Sounds like only partisan stuff is what's intended, centrally to the thesis.

https://www.barrons.com/articles/politics-based-investing-sounds-smart-these-strategies-work-better-30cf40ea?mod=hp_SP_C_1_3

Comments

  • edited June 6
    It's prudent to put aside political preferences when investing.
    Many investors who disliked Obama or Trump "cashed out" before their first terms commenced.
    On both occasions, the stock market performed well afterward.
    The article offers the following sensible advice.

    "Best advice: Stick with stocks and bonds, but don’t count on lavish returns.
    To hedge against government bloat, keep bonds fairly short-term and diversify stocks overseas.
    Decide for yourself whether to seek increased exposure to so-called megatrends,
    including ones the government is spending on, but if you do, choose carefully."
  • Best advice, yes. But I guess it bears repeating: everything that matters is political, not just explicitly partisan differences.
  • There is a difference between ignoring what is happening economically and investing solely on political beliefs. For instance, tariffs were boldly promised and lots of money has been made betting that Trump would chicken out.

    All information should be considered and weighed appropriately.
  • Investors have learned to ignore the TACO trade (traders have had their fun there).

    Weighing the fundamental changes and challenges associated with new US policies is a bit more complicated.
  • edited June 6
    "There is a difference between ignoring what is happening economically and investing solely on political beliefs."
    "Weighing the fundamental changes and challenges associated with new US policies is a bit more complicated."

    FWIW, I agree with both statements...
  • Indeed. Valid, smart distinctions. Thanks for that!
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