PANDEMIC CONUNDRUM (2)
True to its nature, the market continues to climb a wall of worry: layoffs, lockdowns, second wave of COVID-19, Trump vs Biden, China – US trade war. We can probably go on for another page of worries, but you get the drift.
As we move closer to the US election day (November 3rd, 2020), many clients are getting nervous for different reasons: some worry about the socialist biases of the Democrats, i.e. tax increases, more government and regulation; others worry about another four years of Donald Trump’s trade war and international bickering strategies.
To keep one’s perspective, we decided to look back 120 years, using the Dow Jones as a proxy and here are some statistics:
- If you had invested $10,000 starting in 1900 and remained invested only when the President was a Republican, it would be worth $99,000 today;
- On the other hand, if you had done the same thing but only when the President was a Democrat, it would be worth $430,000 today;
- As obvious as it seems, you should know that if you had invested the same amount since 1900 and stayed in the entire time until today, it would be worth $4.2 million.
Leading us to believe: WHO CARES WHICH PARTY HOLDS THE PRESIDENCY?
As usual, there are lies, damn lies and statistics.More