The Election – A Different Point of View

Many Americans are concerned about the presidential election and what that will mean for their investments. The purpose of this post is to speak to those fears.

For starters, I recommend reading this exceptional piece written by Dimensional Fund Advisors Founder and CEO, David Booth. You can see the article here: Vote with Your Ballot, Not Your Life Savings.

On Halloween night, I found myself trick-or-treating with an unlikely companion: 15-year-old Colton Cummings, the son of a good friend of mine. Colton is Autistic. I hadn’t spent much time with Colton, but after that night I realized that he’s both hilarious and insightful. You see, Colton doesn’t have the limitations of worrying about offending other people, nor is he weighed down by the burden of trying to impress. There isn’t much guile with Colton, if any.

Today is election day, and a presidential election at that. For me, today marks the seventh presidential election that I will vote in. In my home growing up we spoke openly about politics. The 1988 presidential election was the first that I can remember—George H. W. Bush vs. Michael Dukakis. I didn’t know a thing about the policies of either candidate, only that “we” were for Bush (my dad). Oh, and my friend Jordan was for Dukakis, for whatever that’s worth!

In every election since then, I can distinctly remember the oft-repeated phrase that “this is the most important election ever.” I guess that is a good perspective – this is today’s election, making it the most important election today!

But this year’s election has a different twist to it. Not only do both sides claim to be the better party with better ideas, better people, better policies, etc., but both sides seem to have convinced themselves, and many their followers, that a victory for the other party means an “end to democracy.”

A few weeks ago, I was at a family dinner party. One of my “well informed” cousins said, “I’m voting for ___, because I’m afraid that if ___ wins, that will be the end of our democracy.”

My other “well informed” cousin chimed in and said, “I’m voting for the opposite person for the same reason; because if ____ doesn’t win, that will be the end of our democracy.”

Do you feel that way? Are you worried that if your candidate doesn’t win, our democracy will come crashing down?

My buddy Colton had a different take. When I asked who he was voting for, he simply said, “I think the whole thing is over-hyped. I mean, it’s only four years and whoever wins, they still have to fight with the legislative and the judicial branches of government.” (picture a cute, 15-year old autistic kid saying that—what a baller!)

Colton is right. He could officially be the smartest political pundit in America. In short, he’s saying that regardless of who wins, these things will happen on November 6th:

• The sun will rise.
• Well over 100 million Americans, and billions the world over, will wake up and go looking for food; in our modern world, this means they’ll go to work.
• They’ll continue to organize themselves into companies, with the task of providing goods and services for a profit. These goods and services will generally make life better—not worse (or else natural selection will lead them out of business).
• These people will continue to innovate, leading to a better life tomorrow.
• The profits and improvements will benefit the shareholders of the companies, you!

In short, I’m here to remind you that, regardless of who sits in the White House, life will go on. Elections do matter, so make sure to vote for who you believe will be the best candidate! But win or lose, don’t fret. The quality of YOUR life will be determined 1000x more by the decisions you make, than it will by who wins this election.

Fortunately for you and for me, YOU are in the driver’s seat of your life. Not the next president.

And as for your investments, remember that you invest in companies, not politicians!