It has been quite an unprecedented week in American politics.
On my goal list, coming out of college, was to run for US Senate later in life.
I LOVED politics.
To say I have no interest in a career in politics now is an understatement.
I try to ignore politics beyond any potential impact on client portfolios, which is frankly minimal beyond taxes.
But, clients ask questions.
I get it.
Most investment firms will put out a fancy market performance chart, highlighting blue and red time periods, with the takeaway being 'it doesn't matter.'
In my opinion, that does not really help.
I address political questions with this analogy:
Imagine you have a jar filled with Red Ants and Black Ants.
If left undisturbed, the ants will coexist peacefully, each going about their business.
This tranquil scenario can be likened to a society where different groups, despite their differences, live and work together harmoniously. Now, consider what happens if you take that same jar and give it a violent shake.
Suddenly, the once peaceful ants are in a frenzy.
They perceive the other color as a threat, and chaos ensues as they start to fight each other.
The shaking of the jar triggers their defensive instincts, leading to aggression and conflict.
Who is to blame? The Red Ants? The Black Ants?
I blame the 'Jar Shaker.'
This analogy is exactly what we have today in American politics.
In a society, much like in 'The Jar', different groups of people—different political parties, ideologies, and social classes—can coexist relatively peacefully.
We would have differences, but there would be a general sense of mutual respect. However, in today's absurd political climate, it's as if 'someone' is constantly shaking The Jar.
Social media, corporate "media" sensationalism, inflammatory rhetoric, and divisive leaders create a state of perpetual agitation.
People are stirred up and emotions are manipulated.
This can lead to poor investing decisions.
And then we go through it again 4 years later......
The Lesson: Don't let the 'Jar Shakers' play with your emotions and ruin your financial plan.
Besides, longtime podcast listeners know that I believe that this is all that really matters: Link
New Investment Insights Podcast from Opal Capital with a look at #NVDA, #AAPL, inflation and the impact of stock splits: Link
Comments