Lately it seems like the difference between politics and investing is getting smaller everyday. With interest rate decisions, government spending, and global conflict, markets seem to react more to headlines than company fundamentals sometimes.
I’m curious how all of you are looking at this. Are you positioning you portfolio based on what’s going on politically, or just staying with your long term plan and ignoring the headlines?
For me personally, I’m 23(24 soon) and only been in the game for a couple years. I’m trying to keep my consistency and not trip about the headlines, but it’s kind of hard to ignore how policy decisions are directing volatility right now. It almost feels like you have to understand politics to some degree to be a successful investor nowadays.
Are markets becoming more political than ever?
byu/Kdub567 ininvesting
Posted by Kdub567
6 Comments
People who don’t want to be involved in politics are realizing that they’re impossible to avoid, because they affect every aspect of our lives, so they shouldn’t check out.
politics have always had an impact on markets.
We just have a wildly abnormal president in the seat, so the impacts are also wildly abnormal.
No
Market has always hyperventilated over politics
What’s different right now is market reaction is a bit more detached than usual from economic realities that potentially adversely impact the likely long term return on equity investment
Stay invested, add what you can when you can, diversify. Doesn’t matter what’s going on in the world, just follow that strategy and you’ll make money.
Everything is more political than ever.
If anything, I would say the markets are becoming LESS political. The market is surging to ATHs despite a half dozen or more political “fires” burning that represent major risks to the short to medium term, and a non-zero chance of a longer term downward correction. But almost every day it’s green candles as people shrug off the news headlines, and any time someone on Reddit brings up bad news they get mass downvoted and dunked on.
Not really. The shock factor affects the market for like a week and then we’re hitting record highs. I think also the advancement of AI is keeping everything steady. The bad news is it’s affecting everyone who isn’t a high income earner. Most people who aren’t middle/high income, don’t invest – because they can’t afford it.