President Obama has been re-elected. Whether you voted for him or not, I don’t know a single person who is going to miss the political commercials, emails, and robo-calls. (Except maybe the actors and agencies hired to produce them.) The day after the election, equity markets traded down on continued bad news from Europe and the election results. The talking heads on business news channels dialogue has moved from the election and is now focused on the looming fiscal cliff. While this is definitely an issue we have been following, it is a small piece of a large mosaic that makes up our long term investing thesis. Investors should never make an investment decision without looking at the entire picture, including fundamentals, cash flow, economic indicators, consumer sentiment, technological advances, productivity, demographics, and many many other factors. Remember the television anchors are selling ratings, and a long-term investment outlook doesn’t get people glued to their television.
Your thoughts and questions are welcome.
Marisa A. Lenhard, CFA, CFP®