Political Portfolios
A recent study from Bespoke Investment Group looked at investment returns depending on who was President. Going back 70 years, $1,000 invested in the stock market when a Republican was in the White House would be worth $27,400 today. $1,000 invested only when a Democrat is President would be worth $52,100.
Does that mean your investment strategy should hinge on the party in power? Bespoke’s study strongly suggests otherwise. If that same $1,000 had been invested continuously (regardless of the President’s party), it would have grown to over $1.4 million. The numbers are stark: political allegiance might win elections, but it doesn’t guarantee investment success.
The key takeaway is that a disciplined, long-term investment approach tends to smooth out short-term volatility, including that caused by political shifts. Investors should focus less on the political landscape and more on the fundamentals of their investment strategy—asset allocation, diversification, and regular contributions. By investing through thick and thin, an investor can harness the power of compounding returns, one of the most potent forces in investing.
At First Fiduciary, we steer clear of the unpredictable tides of political discourse, focusing instead on investing in high-quality companies with sustainable competitive advantages and compelling valuations. We believe that strong fundamentals, rather than political winds, drive long-term wealth generation for our clients.
Articles We Enjoyed:
The Man Who Broke Bowling
Jason Belmonte’s unique two-handed throwing motion changed professional bowling forever.
Cockroach Theory
Like the unwanted pests, bitcoin, too, just won’t seem to die. The Economist explores why that might be.
Delivery Drones
Your next package delivery may show up via drone.
Tetris
A 13 year old boy is believed to be the first person to beat the classic video game.
Ancient Scrolls
Using artificial intelligence tools to solve a 2,000 year old puzzle.
Bluey
What makes the children show Bluey so popular, among both kids and parents?
Notable Reads:
The Funny Men
by Steve Allen
Released in 1956, Allen’s book captures the evolution of comedy from the stages of vaudeville, through the golden age of radio, to the dawn of television. He deftly profiles the era’s comedy giants, offering insightful analyses into why some couldn’t replicate their success on the small screen. Filled with keen insights that come from his deep reverence for his subjects, Allen writes less like a peer and more like a passionate fan. Comedy enthusiasts will enjoy this walk down memory lane. – AG
Words to Negotiate By
by Mark Termini
Basketball agent Mark Termini offers an insightful guide into the nuanced world of high-stakes negotiation. The book blends practical advice with real-world examples to give readers the tools they need to navigate complex conversations. – AG
More Than a Trusted Investment Advisor
Recently, one of our institutional clients notified us of a cash need to make an important investment for the organization. A benefit of having an investment style that emphasizes dividends is that there is a reliable flow of current income regardless of the market’s direction. In this case, we raised the capital to cover the withdrawal and invested the proceeds in a money market earning 5% until it was disbursed. By addressing its cash needs as soon as possible, the organization funded the withdrawal while allowing the rest of its portfolio to continue to grow.
Let us know if you face any changing situations. We would be happy to help you strategize the best way to handle them.
The data contained within this newsletter is for informational purposes only. The information contained herein should not be considered investment, tax or legal advice.
This newsletter contains links to external third party websites that are not affiliated with First Fiduciary Investment Counsel. FFIC does not control or direct the content of the information contained on these websites. Information contained on the third-party website is relevant on the date the newsletter was published but may be changed or revised by the third parties without the knowledge of and/or notice to FFIC.
Statistics and other information have been compiled from various sources. First Fiduciary Investment Counsel believes the facts and information to be accurate and credible but makes no guarantee to the complete accuracy of this information.
Past performance does not guarantee future results. The mention of securities or types of securities in this newsletter should not be considered as an offer to sell or a solicitation to purchase or sell any securities mentioned. Neither First Fiduciary nor the authors hold positions in any of the stocks mentioned unless otherwise stated.
First Fiduciary Investment Counsel, Inc. is a registered investment adviser with the Securities and Exchange Commission. A more detailed description of the company, its management and practices is contained in its firm brochure document, Form ADV, Part 2. A copy of this form may be received by contacting the company at: 6100 Oak Tree Blvd., Suite 185, Cleveland, OH 44131; Phone: 216.643.9100; Email: ffic@firstfiduciary.com.