A video of former President Donald Trump and President Joe Biden is played during a hearing of the special committee investigating the January 6 attack on the U.S. Capitol on June 13, 2022 in Washington, DC.
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WEST PALM BEACH, Fla. – Investor emotions could be running high in 2024, particularly in the political realm, as President Joe Biden and former President Donald Trump face a rematch in this year’s election.
“Politics have become more and more emotional,” Moira McLachlan, senior investment strategist at AllianceBernstein’s wealth strategy group, said Wednesday at Financial Advisor Magazine’s Invest in Women conference in West Palm Beach, Florida.
However, investors should avoid knee-jerk reactions by setting an investment plan and sticking to it, strategists said.
“It’s so important to stay invested and you have to try to take the emotion out of investing” to prevent something “harmful” from happening to your goals, said Kristina Hooper, chief global markets strategist at Invesco.
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Trying to time the stock market and predict its movements is largely a losing game. For example, according to a recent analysis by Wells Fargo Investment Institute, the S&P 500 stock index delivered an average annual return of 8% over the past 30 years. For example, missing the top 30 days would have reduced average gains to 1.83%, it said.
There are “a lot of geopolitical issues, a lot of things that can scare us,” Hooper said.
In the last four years, for example, the world has experienced a global pandemic and two wars, said Jenny Johnson, president and CEO of Franklin Templeton.
It taught investors that they can’t predict what will happen, she said.
“So diversify that portfolio,” Johnson added.
Whichever party wins the presidential race, Republican or Democrat, history shows that the winner has had little impact on stock market returns, McLachlan said.
“We tend to think that politics dictates everything, but that is certainly not the case,” she said.
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2024-03-14 15:21:05
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