Why Elections don’t Matter when it comes to Long-Term Investing?
1 Oct 2020 | Eugene Ng | Founder & CIO | Vision Capital
With the upcoming November 2020 US Elections (Trump vs Biden), the financial market and media is abuzz over the near-term impact. Trying to figure out what will happen and what is the next winning and money-making trade to put on depending on who wins.
The good thing when it comes to long-term investing, this is just the usual short-term market noise, volatility & the voting machine at work.
Longer term, the stock market and the specific businesses and stocks that you invest in are almost always driven by fundamentals in the long term, revenues, profits and cash flows.
The following three long-term charts say it all.
S&P 500 have kept rising from the lower left to the top right despite numerous recessions, presidential elections and party changes.
In the near-term, one would unlikely be able to forecast what is going to happen, but over the longer time, we sure have an idea of what economic growth, growth in corporate earnings and cashflows can look like.
Perspective of time is what differs. Think long-term, invest long-term in great businesses and you have less to worry about.
That’s why we think and invest long-term, and not let the noise of the short-term markets cloud our judgement.
That’s why we call this new approach to investing, Vision Investing.
And we hope more individuals will start investing directly in companies again, we believe that individuals can beat the market, and we hope to provide them with a good starting point on how to do so.
If you do find such companies and are willing to share it with me, I would be delighted for you to do so, via our website.
Find out more about Vision Capital where we have beaten the market by almost 4X over the last 3 years: https://visioncapital.group/
Check out our recently published book on Investing, available for purchase via Amazon, currently available via two formats, Paperback and eBook “Vision Investing: How We Beat Wall Street & You Can, Too!”.
Join my email list for more investing insights. https://visioninvesting.substack.com/
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