Every four years, the U.S. presidential election delivers, right on schedule, a surge of uncertainty that some market observers insist will drown investors who don’t act now!
We know better. We know the biggest risk investors face is changing course, perhaps in a panic, succumbing to uncertainty amid sensational headlines and getting it wrong. The Vanguard principles for investing success, intended to guide investors steadfastly toward their long-term horizon, are perhaps never more useful than at times such as these.
That the election arrives with plenty of notice gives investors an unusual opportunity to gauge how comfortable they are with uncertainty, a phenomenon that our investing principles contemplate.
‘But this time is different’
It’s fair to say that this election presents some unusual circumstances for the markets. While we hear “But this time is different” with every presidential election, there’s a grain of truth in the assertion this time around.