3 Mistakes Investor Make During Election Years I Capital Group
Investing during an election year can be tough on the nerves, and 2024 promises to be no different. Politics can bring out strong emotions and biases, but investors would be wise to put these aside when making investment decisions.
Benjamin Graham, the father of value investing, famously noted that “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” He wasn’t literally referring to the intersection of elections and investing, but he could have been. Markets can be especially choppy during election years, with sentiment often changing as quickly as candidates open their mouths.
Graham first made his analogy in 1934, in his seminal book, “Security Analysis.” Since then there have been 23 election cycles, and we’ve analyzed them all to help you and your clients prepare for investing in these potentially volatile periods. Below we highlight three common mistakes made by investors in election years and offer ways to avoid these pitfalls and invest with confidence in 2024.