The conclusion of the 2024 election cycle delivered a red sweep, with Republicans set to take control of the White House and the Senate in 2025, while maintaining control of the House of Representatives.
For slightly more than half of American voters, this was the desired outcome.
For many other Americans, though, the election result was unwelcome.
And for those who are philosophically at odds with the people soon to be in power and the policies they promote, it may be deeply troubling.
Susan, Donna, and I understand the anxieties that can come with change, and we share many of the concerns that have been vocalized since the election.
We recognize that there will be periods of time where staying invested in the financial markets might be psychologically challenging.
Also, there likely will be stretches in the months and years ahead where asset prices decline, and portfolio values drop.
These events – policy enactment and market direction – may be causal, or they may be coincidental, and I suspect at times it will be hard for investors to keep clear heads as the situation unfolds.
Remaining unemotional when it comes to your money is always a challenge.
It might help to remember that nearly all individuals are prone to confirmation bias, which is the tendency to interpret new information as confirming one’s existing beliefs.
As investors, we must be extra vigilant to avoid the confirmation bias trap. Taking action in your portfolio that might hurt the probability of your financial plan succeeding over the long term isn’t a recipe worth cooking.
It can be uncomfortable to climb a wall of worry holding a portfolio that contains risky assets, even when we know this is a sound long-term financial decision for most people, under most circumstances.
As fiduciaries, Susan, Donna and I are legally bound to put the best interests of our clients first.
As advisors who care deeply about our clients, we are professionally oriented to work in a collaborative and compassionate manner.
We pledge to continue to approach the financial environment with objectivity, to deliver personalized and accurate financial advice to our clients, and to promote your financial well-being at all times, whatever circumstances may arise.
As we move toward 2025, we hope that the current state of the nation doesn’t weigh too heavily on your overall well-being.
It has been helpful for me personally to remember that there have been times in the past when our country has been starkly divided, and to an even greater degree than it is today.
I have found some comfort in reading Abraham Lincoln’s first Inaugural Address, and especially the following passage, taken from the last few lines:
“Though passion may have strained it must not break our bonds of affection. The mystic chords of memory… will yet swell the chorus of the Union, when again touched, as surely they will be, by the better angels of our nature.”