Of all the biases out there (hindsight, confirmation, etc.) I think political bias has to be my favorite.
I get especially excited when I see people letting their political biases drive their portfolio decision making. As a trader and investor, I feel a certain obligation to take the other side.
Because here's the truth: the market doesn't care what we think. It doesn't care if you and I are liberal or conservative. It doesn't care if we are bullish or bearish. And it certainly doesn't care if we like the President of the United States or not.
And yet...people cannot help but to project their biases onto their portfolio. With Trump officially back in the White House this week, these biases have been on full display.
So what do I plan to do about it? It's simple: I will let the charts tell me what to do.
I will not let headlines or political agendas dictate my strategies.
The people who do that probably assume that "dirty" oil & gas outperformed renewable energy during Trump's first term (wrong!). Or that solar outperformed during Biden's term (wrong again!).
We've got the historical precedent. And we've got the data. Here's the playbook.
JC
