From Nasdaq: 2024-06-25 10:27:00

In his final week of regular contributions to Nasdaq.com, the author emphasizes key concepts for retail investors like the impact of politics on investing. Politicians are selective with facts during high-stakes elections, but the US economy’s resilience transcends political decisions. Data show GDP growth and job creation have been better under Democrats post-WW2, challenging preconceptions.

However, the time lag between policies and impacts, as well as fiscal decisions made by Congress, suggest that the party in the White House may not significantly impact the economy or stock market. Political biases can lead investors to make poor decisions – for example, missing out on market gains due to misconceptions about Presidents’ economic impacts.

Investors should focus on the financial strength and prospects of the companies they are investing in, rather than allowing political rhetoric to sway their decisions. Despite political narratives about the economy, historical data show the resilience and long-term growth of the US stock market.Making decisions based on company fundamentals rather than political noise is key for investment success.



Read more at Nasdaq: Why You Should Keep Politics Out of Your Investing