Investing Ahead of an Election | Yahoo Finance 

Political anxiety can often cloud judgment and lead to emotional investment decisions that can harm your long-term financial goals. A 2009 academic study found that investors tend to make poor decisions driven by fear when the opposing party takes power.  

Even the wealthy aren’t immune to political biases and fear, but they put systems in place to manage these emotions and maintain control over their investment decisions. A recent Yahoo Finance article by G. Brian Davis highlights these methods, including TIGER 21 Members’ approach: 

• Referencing History: Historical data shows minimal differences of median compound annual growth rate during the two parties’ presidencies. 
• Consulting a Financial Advisor: Advisors can help create a plan to ensure continuous investment 
• Automating Investments: Ensures your investment stays on track by making decisions off numerical strategy instead of emotion 
• Diversifying Portfolios: Mitigate risks by having a balanced portfolio across various sectors, both within the country and internationally.  
• Considering Real Estate and Alternatives: TIGER 21 Members diversify with private equity and real estate, holding 29% and 27% of their portfolio in these assets respectively. 
• Utilizing Tax-Advantaged Accounts: Investing through Roth or traditional retirement accounts offers tax advantages regardless of future tax policies. 

Managing political anxiety involves perspective, professional advice, automation, diversification, and tax-advantaged accounts, practices exemplified by TIGER 21 Members. 

Read the full article.