A common question we receive (every four years), and a common concern that many have (and often erroneously use to make investment decisions), relates to how presidential elections may affect the financial markets. To answer that question in some detail, attached please find an analysis from Dimensional Fund Advisors.
Certainly, there can be short-term reactions to election outcomes, and it is tempting to think that “this time is different”. But what matters most are the underlying fundamentals of the economy and the financial markets – both of which we pay close attention to.
Go ahead and file this under “One more thing you don’t have to worry about.”