The historically partisan election cycle has reinforced an important lesson about the importance of long-term planning, said Bob Peterson, senior wealth advisor at Crescent Grove Advisors.
“As an advisor who started in the industry during the dot.com crash – and then also lived through 9/11, the Great Financial Crisis and COVID – I’ve seen firsthand how unexpected events can trigger swift and widespread market losses. Unlike those shocks, elections have set dates, and with clients receiving their news from more and more unreliable sources, it is understandable why both sides of the political spectrum were concerned about an ‘armageddon’ if the other side won,” Peterson said.
“However, if you look back at market returns over the last year, the right answer continues to be to invest for the long term and to understand your own level of risk tolerance. Market downturns are inevitable—it’s part of investing—but basing long-term decisions on election outcomes is rarely a winning strategy,” Peterson said.
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