DON'T LET THE HEADLINES FOOL YOU—SELLING NOW IS THE REAL RISK
Don’t Panic: Why You Shouldn’t Sell Your Stocks During Political Turmoil
When political headlines start shaking the markets—be it elections, geopolitical tensions, or unexpected leadership changes—it’s easy to feel the urge to panic. Watching your portfolio dip can trigger the fight-or-flight instinct, and selling everything might feel like a safe escape.
But here’s why holding your ground is often the wiser move.
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It’s All About the Narrative
Political events often come wrapped in layers of narrative, both despair and optimism, mostly manufactured, often exaggerated. Markets are swayed not just by actual policies or events, but by how they’re framed in the media and perceived by investors. One day it’s the end of the world, the next it’s a new golden age. Recognizing the theatrical nature of these cycles can help you keep perspective. Behind every dramatic headline is usually a deeper strategy to influence opinion or voter behavior—and your financial future shouldn’t be at the mercy of the day’s spin. -
Markets React, But They Also Recover
History shows that while political events can cause short-term volatility, markets typically rebound once the dust settles. Selling in a downturn can lock in your losses, while staying invested allows you to ride the recovery wave when sentiment shifts. -
Emotions Cloud Judgment
Reacting emotionally, especially to dramatic headlines, can lead to impulsive decisions. Investing is a long game. Letting short-term political noise drive long-term financial choices usually backfires. -
Time in the Market Beats Timing the Market
Trying to guess the perfect exit and re-entry points rarely works. Missing just a few of the market’s best recovery days can drastically reduce your long-term returns. -
Volatility’s Sure Winners: The Brokers
In choppy markets, one group consistently profits no matter which direction prices move: brokers. Every buy or sell you make generates a fee or commission, and in times of panic, trading volume soars. While investors worry about losses, brokers celebrate as they benefit from the frenzy. That’s another reason to pause before making moves—you might just be lining someone else’s pockets while hurting your own portfolio.
An example...
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Hey, About That Not-So-‘Surprising’ Drop In Inflation … No doubt you’ve already heard the news that inflation actually declined in March on a month-to-month basis for the first time in almost three years, and fell to 2.4% on a yearly basis. This is horrible news, at least for the Democratic Party, which continues to hope for the worst under President Donald Trump. Economists had actually expected inflation to rise for the month. Instead, this is the first time since July 2022 that the index declined. “Surprising,” said a number of headlines. Recall for a moment last year’s bold promise from Trump on inflation: “Prices will come down and come down dramatically and come down fast,” he said. Democrats are in a tough spot. Unable to tar Trump with President Joe Biden’s inflation disaster, Democrats earlier found what they believed was a point of inflation vulnerability for Trump: The soaring cost of eggs! They complained vociferously about egg prices during the opening days of Trump’s second term, as if his policies had caused the problem. Yet, strangely, Dems and their leftist allies in the media had barely even mentioned the topic until Trump got in office. Indeed, from 2021 to 2024, egg prices rose on average 13.3% a year as Biden ordered more than 100 million egg-laying hens to be destroyed, leaving store shelves short of eggs. Prices inevitably soared. Yet on Jan. 28, CNN ran this headline, just days after Trump took office: “Trump pledged to bring down food prices on Day One. Instead, eggs are getting more expensive.” Uh, not actually. According to Trading Economics, egg prices have plunged 45% since the start of this year. And, as hen flock populations are restored and more eggs are produced, prices will fall further. As Breitbart Business reported, her colleague, Sunny Hostin doubled down on Goldberg’s cluelessness, by claiming prices for eggs are going up. Par for the course for the leftist “mainstream” media complex. <Read More> |
Bottom Line…
Political turbulence is unsettling, but your investment strategy shouldn’t hinge on daily headlines. Stay focused on your goals, diversify smartly, and remember: storms pass, but panic selling can cause lasting damage.
Need help calming your investing nerves? Talk to a savvy, competent financial advisor, or take a nature walk before you hit “sell.”
We are so screwed.
-- Steve
CAVEAT: THIS IS POLITICAL COMMENTARY, NOT INVESTMENT ADVICE
“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words
“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw
“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”
“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius “A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell “Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar “Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS