Today’s Puzzle:

Don’t let disappointment get in the way of your investing strategy. Dan shares with us how to stay the course amidst economic and political upheaval.

(Click the featured times below to jump forward in the episode)

Puzzle Of The Month:

  • [18:20] – Dan discusses how election results affect market returns. 

Jigsaw Pieces:

[2:30] – Dan Shares A Story. 

  • About two months ago, we had a longtime client to call us as he was concerned about his portfolio. It wasn’t performing as well as he’d hoped, and despite multiple conversations about diversification through the years, he was largely concerned about the growth of U.S. markets alone. Needless to say he was left with disappointment.
  • At the time we took this client on, he had three advisors. We’ve since learned a three-tiered advisory relationship is rarely in the best interest of the client as different advisors often employ conflicting financial strategies.
  • Due to his working with multiple advisors, this client had multiple portfolios. On the whole, all three portfolios were performing poorly. While he was well-diversified, he was too focused on short-term losses rather than focusing on the long-term investing strategies.
  • We advised him to choose one advisor who would work in his best interest and remove the possibility for conflicting investing strategies. We also advised him to begin focusing on long-term investing strategies rather than trying to time the market.

[21:48] –  The President Doesn’t Affect Returns.

  • We often speculate that such-and-such political party is the reason for market downturn. However, history shows us that market movement is rarely dictated by who’s in Washington. Herbert Hoover and George W. Bush were both in office during times of economic crisis, yet Ronald Reagan, also a Republican, was in office during the 1980s bull market. While the mid-term elections might leave you with disappointment, don’t let them affect your investing strategy.

[26:44] – How Will Washington Politics Affect My Money? 

  • To be perfectly honest, what happens in Washington probably won’t have as great an affect on your money as you might think. There will be all sorts of things to happen that will affect your portfolio, but Nancy Pelosi’s actions and the news you see on Fox News and CNN probably won’t be a factor.

Extra Fragments:

  • [24:19] – What Will Happen Politically In The Next Two Years?

Mailbag:  

  • [32:43] – Louise asks how to rebalance her portfolio in lieu of recent market volatility.

The Full Picture:

Free Stuff:

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Additional Resources:

The host: Dan CuprillSchedule A Time To Meet – Or Call: (513) 563 – 7526

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