16 min
Why Your Politics Shouldn't Affect Your Investment Portfolio Excess Returns
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- 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