Do Elections Move Markets? What the Data Says

With election season in full swing, it is easy to feel like the outcome will determine what happens to your portfolio. In Episode 60 of The Informed Investor podcast, a panel from Dimensional Fund Advisors takes on the most common myths about elections and markets, and offers sensible answers as investors head to the polls.

The panel made a point we found particularly insightful. As U.S. citizens, we are bombarded by election news, and it is natural to let that intensity spill over into our investments. Yet a globally diversified portfolio holds companies in dozens of countries, and few of us follow the politics of each one. Companies adapt to new rules and tax policies, and the best response for investors is usually to stay diversified and stay invested.

It is a grounding message for this season, and it echoes David Booth's often repeated quote: "Vote with your ballot, not your life savings."