Events, Dear Boy, Events
This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend Reading
You are likely no stranger to the fact that major events, like U.S. presidential elections, create ideal fear-inducing headlines for media outlets. However, this intense attention can also create an illusion that elections have profound effects on all areas of life, including investments.
READ THE ARTICLEWhat to know: Complex financial systems (like the markets) are chaotic and resist simple cause-and-effect assumptions. Short-term market fluctuations in response to election outcomes often stem from investor expectations rather than actual changes to fundamentals. As a result, these reactions rarely translate into predictable, long-term market outcomes.
Key takeaways: You might at times feel tempted to adjust your portfolio based on major national events, but the most important thing is to remember your long-term objective. Stick to your personalized investment strategy, focus on diversification, and tune out the noise that is irrelevant to your financial wellbeing.