Investors often wonder whether the market will rise or fall based on who is elected president. The data show that capturing the long-term returns of the capital markets does not depend on which party controls the White House. In a recent webcast, Dimensional’s Mark Gochnour and Jake DeKinder offered lessons from history.
Additional highlights from the webcast that did not make the 4-minute video:
- Recognize that elections and politics touch on our core beliefs. We can acknowledge our emotions surrounding those beliefs, but we must learn to separate our emotion so that our decisions are based on data and evidence. This is one of many factors that contribute to an investor’s long-term success.
- There’s no trend for market outperformance based on a Republican or Democrat being elected President.
- A President should receive neither credit nor blame for market returns. There are many factors that impact market returns.
Click on the video below to access the 3:57 video.
