What to Do About the US Election

Before you do anything, consider historical patterns, what’s different, and what you can handle

Andrew Willis 20 October, 2020 | 3:00PM

White house back lawn
The US presidential election is coming up and with the way 2020 has turned out so far, the only certainty is that things are uncertain. The US election itself should not play any part in your investment strategy, but many investors will be thinking about how the result could affect their portfolio.

Shifting your portfolio to try and predict events is called market timing and it's usually a Bad Idea. Events are often dominated by emotions, with uncertainty leading to selling and then more selling. Panic sellers will probably wrongly predict peaks and troughs around Election Day, and if you join them, you could miss out on some gains.

At the same time, it’s hard to ignore what’s happening across the pond. So what’s the middle ground? Well for starters, back your investment decisions up with facts – and data.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Andrew Willis  Andrew Willis is a content analyst at Morningstar Canada 

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