Well, we are now fully in election season. During election years, we are often asked by our clients if we should be changing our portfolio allocations based on who might win the White House or Congress. We wanted to pass along the following article from our friends at JP Morgan which gives one example of an investment sector that did the opposite of what you would think it would do based on who is in the White House.
We continually review our investment models and are always looking for ways to improve them.  However, we’ve determined that changing investments in anticipation of who will win an election doesn’t result in superior performance.  This is because investment performance tends to be impacted more by larger economic forces than shorter-term political changes.  With so much in the news about the Presidential election and with our natural tendency as humans to have recency bias, we thought it would be good to bring this to your attention, and hope that it might help to ease your mind this year when you read the news.  If you would like to discuss further, contact us anytime.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax or legal advice. Please note that individual situations may vary. Therefore, this information should be relied upon when coordinated with individual professional advice.