Today Liberals are elated. Conservatives are forlorn. Independents and Libertarians are apathetic.
As an investor, what emotion(s) should you be experiencing?
None. Zilch. Nada.
Investing should always be performed emotion-free–that is, facts should trump feelings.
Said conversely, if you are feeling emotional in any away about the 2012 election results you should step away from the brokerage account and, instead, spend time celebrating or commiserating with “friends” on Facebook or your “Tweeps” on Twitter.
Being a wise, emotion-free, value investor means that you look for great companies selling at reasonable (or cheap!) prices, who treat their shareholders well (as partners), and who will generously reward your patience with years of steady, worry-free income.
That said, the majority of “investors” are not investors at all–they are “speculators.” A speculator will quickly jump on his computer or smart phone this morning and place sell orders on their “anti-Obama” stocks and/or buy orders on their “pro-Obama” stocks. In the short-term they may or may not be right (because, even in casinos, some gamblers will win), but in the long-run they are on a fools-errand. No one, barring God, can predict the future–and that includes you.
So, on the day after election day how should you invest? Emotion-free, wisely, and value-oriented. The same way you should be investing every day.
As the market panics or celebrates in the coming months, good deals on great companies will become manifest. This is a good thing! Have some cash on-hand and get ready to invest wisely with me.