With a presidential election on the horizon, there are shouts and murmurs aplenty about what 2020 means for investing strategies. From newspaper headlines to candidates themselves, “stock market performance” has become a litmus test for the success of presidential policies, although not necessarily so. In reality, we must look beyond these, to the actual data itself.
A recent analysis by Invesco demonstrates how long-term market performance over the past 120 years shows almost no correlation with government policies. Invesco cites 10 investing truths that reiterate the logic of staying the course. Among these are items such as “Markets have performed well under both parties.” “Monetary policy matters more.” “It’s okay if you don’t like the President. The market doesn’t care.”
Invesco encourages investors to heed the advice of Abraham Lincoln and “Stand firm.” There is always an untold story.