“The sky is falling! If my chosen candidate doesn’t win, the markets are doomed and so are my investments.”
In this article, Bijan Golkar points out that a presidential election can cause excitement or despair depending on if you are a Republican or a Democrat and who the major parties nominate for the highest and most powerful office in the world.
The article discusses market returns both before and after a presidential election year and some of the underlying reasons for market volatility. Then the article stresses the importance of a person’s long-term goals and a plan for long-term growth as opposed to “emotional investing.” Finally, the article discusses the pros and cons of our economy that could affect investment values.
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You may want to use the information in this blog post and the original article to
- Discuss the importance of a long-term investment plan that will take advantage of the time value of money.
- Describe some of the pitfalls of “emotional investing.”
- What are the typical characteristics of an emotional investor? Of a long-term investor?
- What are the advantages of a long-term investment program when compared to “emotional investing?”