A hotly contested election, a global pandemic… these are emotional times. We have lost friends and loved ones to the coronavirus. We remain isolated in quarantine and politics have divided our country.
But when we get emotional, we should do three things: Listen to smart people, pay attention to the numbers and let history be our guide. Emotions are subjective but wisdom and data are irrefutable.
Dr. Phillip Freeman, a psychiatrist and training and supervising psychoanalyst at the Boston Psychoanalytic Institute, said we have all become “emotionally fatigued” by the global pandemic and this has made the emotional impact of the election even more “raw and acute.”
He said it is essential to take a deep breath and not allow our emotions to cloud our vision.
Now, let’s take a look at the data and this chart, brought to us by First Trust. Remaining fully invested over time regardless of politics is the best course for your investment portfolio.
Dr. Daniel Crosby, the chief behavioral officer at Brinker Capital, put it really simply: “Is the market risky over a 30-year horizon? Not really. Is it risky for people who make panicked decisions from moment to moment? Yeah.”
It is easy to get emotional, but with the right support and the right people around you, it’s easy to stay the course.
Do you have questions regarding your particular situation?
