The Market Doesn’t Care Who You Voted For

One of the worst mistakes investors make is letting politics decide when they invest.

This chart is a powerful reminder.

Since 1953, the real wealth was not made by only investing under Republican presidents or only investing under Democrat presidents. The real wealth was made by staying invested through both.

Of course, that is hard for people to do because politics can stir up our emotions. When “our side” is in power, we tend to feel optimistic. When “their side” is in power, we tend to see danger everywhere.

But it’s a hard truth that markets do not care how we feel.

Warren Buffett once said, “If you mix politics with your investment decisions, you’re making a big mistake.”

Based on the above chart, who can disagree?

While taxes, deficits, regulations, and policies all matter. none of that changes the bigger lesson: disciplined investors must learn to separate political opinions from portfolio decisions.

Investors can always find a reason to be afraid.

The goal is not to ignore risk. The goal is to keep politics from becoming your investment strategy.

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