Turn on the news or hop on the internet and you will find no shortage of predictions for the upcoming Presidential election, the economy, and the stock market. In many cases these predictions make all the sense in the world, and investors can be tempted to move their portfolio based on them. At Modus Advisors, we generally discourage this behavior.
The primary goal of the media is to attract viewers or readers. Oftentimes, the most outrageous predictions get the most views or clicks. The media can be and often is mistaken. Here are a few predictions and quotes from past elections that did not turn out so well:
With the benefit of hindsight, we can see that each of these predictions was totally wrong. Many of today’s predictions will share the same fate. At Modus Advisors, we encourage our clients to develop and stick with a long-term investment plan, versus shifting your portfolio and investment plan based on the predictions of the day.