16 min

Why Your Politics Shouldn't Affect Your Investment Portfolio Excess Returns

    • Investing

We all have our political views. We all have a series of policies that we think would make the world a better place than it is today. And in the polarized world we are in today, most people are more entrenched in these views than they ever have been. 

No matter what you think about politics, though, it is important to understand that it is likely best to separate those views from what you do with your investment portfolio. 

In this episode, we look at the historical data to explain why which party controls the White House is not likely predictive of how the market will perform. 

We discuss: 

- The historical performance of the market under Democratic and Republican administrations

- The importance of sample size when judging historical returns

- The role of the lag in the impact of economic policies

- Why the policies of both parties going forward may be more similar than you think

ABOUT THE PODCAST

Excess Returns is an investing podcast hosted by Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau), partners at Validea. Justin and Jack discuss a wide range of investing topics including factor investing, value investing, momentum investing, multi-factor investing, trend following, market valuation and more with the goal of helping those who watch and listen become better long term investors.

SEE LATEST EPISODES

https://www.validea.com/excess-returns-podcast

FIND OUT MORE ABOUT VALIDEA

https://www.validea.com

FOLLOW OUR BLOG

https://blog.validea.com

FIND OUT MORE ABOUT VALIDEA CAPITAL

https://www.valideacapital.com

FOLLOW JACK

Twitter: https://twitter.com/practicalquant

LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN

Twitter: https://twitter.com/jjcarbonneau

LinkedIn: https://www.linkedin.com/in/jcarbonneau

We all have our political views. We all have a series of policies that we think would make the world a better place than it is today. And in the polarized world we are in today, most people are more entrenched in these views than they ever have been. 

No matter what you think about politics, though, it is important to understand that it is likely best to separate those views from what you do with your investment portfolio. 

In this episode, we look at the historical data to explain why which party controls the White House is not likely predictive of how the market will perform. 

We discuss: 

- The historical performance of the market under Democratic and Republican administrations

- The importance of sample size when judging historical returns

- The role of the lag in the impact of economic policies

- Why the policies of both parties going forward may be more similar than you think

ABOUT THE PODCAST

Excess Returns is an investing podcast hosted by Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau), partners at Validea. Justin and Jack discuss a wide range of investing topics including factor investing, value investing, momentum investing, multi-factor investing, trend following, market valuation and more with the goal of helping those who watch and listen become better long term investors.

SEE LATEST EPISODES

https://www.validea.com/excess-returns-podcast

FIND OUT MORE ABOUT VALIDEA

https://www.validea.com

FOLLOW OUR BLOG

https://blog.validea.com

FIND OUT MORE ABOUT VALIDEA CAPITAL

https://www.valideacapital.com

FOLLOW JACK

Twitter: https://twitter.com/practicalquant

LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN

Twitter: https://twitter.com/jjcarbonneau

LinkedIn: https://www.linkedin.com/in/jcarbonneau

16 min

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