The 2024 election year has just become more interesting. That being the case, we want to reach out and get ahead of any emotions that may arise between now and the swearing-in of the next PODIS.
Here is a link to eight decades' worth of election-year stock market returns. As you will see, a long-term buy-and-hold strategy would have worked very well the majority of the time.
To help you stay on a stress-free election year investment path, here are seven ways to remain calm during this election.
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7 ways to stay stress-free during the 2024 election
- Think like Warren Buffett. I once read that Warren Buffett never looked at an investment statement that he had just purchased less than five years ago. Fretting too much about what happens in a stock market cycle of less than five years is not practical. Investing in the stock market is, after all, a long-term business decision.
- Keep your financial advisor on speed dial. Great investors use professional financial advisors to help them make good decisions.
- Be careful watching too much news. If you watch more than an hour of news a day, I will say that you watch too much news. One hour a day is 30 hours a month, which should be more than enough time to keep up with what you need to know about political happenings.
- Read. Few things provide more edification and positive mental health gains than reading. Reading can also be a pleasant distraction from the news during an election year. Here are a few books I have read lately that I would highly recommend.
The House of Rothschild by Niall Ferguson
Lucky Me by Rich Paul
Walking with Sam by Andrew McCarthy
- Try to keep an open mind. Always study both sides of the equation. While it is often easier to stay on the narrow path, consider studying both sides of a conundrum. Not doing so can lead to things like confirmation bias, which can prevent us from reaching our potential.
What would Apple do during a big election year?
- Try to keep your emotions out of your investment decisions. As I have often shared with my clients over the years, big companies like Apple, Ford, Home Depot, and Microsoft are probably not making big adjustments (if any) based on who may or may not win the election. Fortune 500 companies focus on making a profit 365 days a year, regardless of which President is in office.
- Take care of yourself. At Inspire, we've always appreciated the benefits of physical fitness. Getting some form of exercise several days a week—maybe even every day—is also good “business.” We believe the better your body is performing physically; the more your mind is “free” to remain relaxed and in a state of peace. And it is in this state of peace and calm that we typically make our best decisions.