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Presidential elections matter but not so much when it comes to your investments
While presidential elections can of course be hugely consequential in terms of the direction of public policy, they should not dictate your investment decisions. Numerous variables influence the political climate in a presidential election year, making it difficult to base market strategy on a single factor. Vanguard research dating to 1860 finds no statistical relationship between the performance of a 60% equity/40% bond portfolio in presidential election and non-election years, as shown in the first chart that follows. Markets efficiently price in current events. It's difficult to predict volatility or blame it on ... (full story)