For Investors, What if This Time Is Different?

Published On Oct 27, 2024, 3:00 AM

The article discusses how, historically, disregarding political events has proven to be a successful investment strategy in the U.S. stock market, which has delivered a 10.3% annualized return from 1926 to 2023 despite various global crises. However, the author acknowledges that current geopolitical tensions and an upcoming contentious U.S. election could challenge this long-standing trend. Although the author believes the markets will eventually trend upward regardless of the election outcome, they caution that significant changes in the political landscape could disrupt this assumption.

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Considering the historical resilience of the stock market despite political turmoil, coupled with a general optimism about long-term market trends, investing in a broad-based ETF could be favorable. However, the current political uncertainties could lead to short-term volatility. Therefore, a cautious outlook on individual stocks might be prudent until after the elections.

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