Some readers of my newsletter asked me how to position their investments for the upcoming election.

I did a survey of academic journals on this topic, however there are basically no research papers available. There is an article published in the Journal of Financial Analysis, but this journal is not considered a top-tier academic journal. The lack of research could either mean that this topic is not viewed as a serious academic topic, or that there is simply not enough data to establish any validity.

I then went on to research industrial publications and found an interesting chart to show to you, my readers, that will drive home an important point that is dear to me, specifically, that you shouldn’t try to outsmart the market based on presidential politics.

See the chart below, during the Trump administration, renewal energy stocks outperformed traditional energy stocks by 43%; during the Biden administration, renewal energy stocks underperformed traditional energy stocks by 53%. If you had picked stocks based on presidential preferences, you would have been screwed left and right, literally. 

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