The Market Reacts to An Assassination Attempt
If you told and asked the average American, “The former President and current presidential candidate was shot in the ear on Saturday in an attempt on his life. What will the stock market do on Monday?“
I doubt many people would answer, “Ehhh – basically nothing. The market won’t care.”
But the market had an unnoteworthy, “basically nothing” day on Monday, July 15. It was up 0.28%. Whoop-dee-doo.
Why?
Most people misunderstand what the market cares about. While individuals are undoubtedly concerned about how this assassination attempt affects American democracy, the market’s mind is elsewhere. The market cares, ultimately, about long-term corporate earnings.
Investors/voters have long tried to mix their ballots with their portfolios. They want there to be a strong correlation that, quite frankly, does not exist. The market goes up and to the right over long periods of time, regardless of who is in office. Look at these two charts:
You might care deeply about politics, America, your candidate, or any number of issues heading into this November.
The market cares less. It certainly cares differently. Red, blue. The market doesn’t care. Don’t forget that over the rest of this year. Turn off Fox News and CNN. Don’t let politics inform your investment decisions.
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-Jesse
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