2020 has been volatile to say the least and as Wall Street heads deeper into a wildly divisive election season, investors everywhere are looking for safe havens.
Mike Hanson, senior vice president of research at Fisher Investments, Real Money contributor Bob Lang and Larry Siegel, director of research at the CFA Institute Research Foundation, joined TheStreet contributor Laura Petrecca to break down how the average investor should approach the upcoming election.
Most prominent in the numerous pieces of advice presented was not only digesting the news, but approaching it with a critical mindset. “It's best to turn off the noise and turn down the volume of what's happening in the media. I know they're trying to be very helpful at times, but let's remember, what's media all about? It's about making money and drawing eyeballs and ears and so forth,” Lang said.
Siegel agreed, suggesting investors strive to consume news from a variety of sources, even ones that may be outside of their political leanings.
While the panelists offered a variety of ways investors can prepare for whatever to come, all agreed that keeping the long-term in perspective is critical.
“If you have a longer time horizon over even just a few years… any volatility in the short term is going to be minuscule and just a blip on the radar compared to whatever the longer term trends are in a macro economic sense. That's always been true for political outcomes, especially for United States political outcomes,” Hanson said.
Investing in stock markets involves the risk of loss and there is no guarantee that all or any capital invested will be repaid. International currency fluctuations may result in a higher or lower investment return. This document constitutes the general views of Fisher Investments and should not be regarded as personalized investment or tax advice or as a representation of its performance or that of its clients. No assurances are made that Fisher Investments will continue to hold these views, which may change at any time based on new information, analysis or reconsideration. In addition, no assurances are made regarding the accuracy of any forecast made herein. Not all past forecasts have been, nor future forecasts will be, as accurate as any contained herein.