“What are you doing to prepare for the November election?” the board member asked us. The CTC investment team was at the recent meeting to discuss the charity’s investment results year to date and what, if any, changes were being made to its portfolio.
“Are you going to cash?”
This question is being asked in various forms as the turbulence of political uncertainty affects the markets.
“Should I sell everything?”
“Should I wait until after the election to invest?”
“What is going to happen?”
Here is Covenant Trust Company’s perspective: short-term market moves are unpredictable; they can seem illogical. We are long term investors. When you use a longer-term lens, the importance of remaining fully invested appears. In five months, we will be past the election. The upcoming election, as vitriolic as the campaign will no doubt be, will result in an orderly transfer of power to the next president, #45. Bakers will continue to bake, entrepreneurs will continue to innovate, managers will continue to improve operations, and businesses will continue to make things. New homes will be built and consumers will continue to buy groceries.
It’s easy to lose focus on the long term when the short term is so unabatedly distracting. Count on CTC to keep the long term goal squarely in view.