Should Politics Play A Role In Our Investments? - Forbes | Canada News Media
Connect with us

Politics

Should Politics Play A Role In Our Investments? – Forbes

Published

 on


With yesterday’s inauguration of Joe Biden, it seems the perfect time to consider the role that politics may play in our investments. Over the past weeks and months, politics has been a hot topic. Undoubtedly, we can expect the economy to change and the markets to react as policies and priorities shift. Many are worried about the outcome of the election—and many others are excited. So, with all of the different emotions at play, how do we think about politics as we make our investment decisions?

The Choice Facing Financial Advisors

As Commonwealth’s chief investment officer, I serve a wide range of advisors and clients. They all have political opinions, and I may fundamentally disagree with many of them (half?) on very important issues. How can I handle this disconnect?

As I see it, I have a choice. I can take public positions that might feel good but will both alienate and ill serve a substantial portion of my community, while convincing no one. Or, I can focus on communicating what I both know about and have been tasked to do, in order to help people, as investors, navigate the current turmoil.

All financial advisors face the same decision. For all of us, no matter what our opinions, stating them can make us less effective for a substantial portion of our clients. And we can’t sidestep the issue by saying we have no opinions, because of course we do. What to do?

The way I have tried to deal with it is by explicitly separating the two roles I have: as a citizen (where I have very strong opinions) and as an economist and investment advisor (where all that matters is the data). By decoupling the two, I acknowledge I have my own opinions, but I try to make them less relevant to the discussions we are having.

I might say something like this. “As a citizen, I certainly have my own opinions, which may (or may not) be the same as yours. As your advisor, however, they don’t matter. My job here is to help you navigate the uncertainty around these events in your investments, not in the rest of your life. Because of that, we can look at the economic and market facts, which is what I am here to do, and make a decision that is best for you. My only concern, sitting in this chair, is your financial future.” I have used something like this with multiple client groups, on both sides, and it has been effective.

A Focus on Long-Term Outcomes

Another way to approach this is to demonstrate how it works in practice. In the last two elections, for example, I had people—on different sides—who wanted to sell out when Obama was elected and when Trump was elected. In both cases, it would have been a mistake. This example is a good follow-up, as you can directly look at emotional decisions, tie them back to the factual results, and make the point that as an investor, data is what is needed most. And that is the job of an advisor. However good or bad things are now, investors need to be focused on the long-term outcomes, not the short-term headlines. Taking the politics out can and does yield better long-term results.

Bumps in the Middle of the Road

This approach doesn’t always work, of course. I typically get feedback, some of it ferocious, whenever I write a piece that touches on politics, with my recent blog post on Washington turning a light shade of blue a good example. Several people felt very strongly, based on that post, that I must be a hard-core Republican. Others thought that the piece showed a clear Democratic basis and needed to be rewritten.

What I tried to do, though, was write something straight down the middle, presenting the facts and reasonable conclusions in a nonpartisan way. With this one, more than some of the others, I clearly failed in the eyes of some readers. That is inevitable, and the feedback helps me get better, so I appreciate it. I will try to do better. But I also draw comfort from the fact that I got fire from both sides. The middle of the road can be an uncomfortable place as well.

Recognize the Disconnect

What if you are not an advisor but just concerned about your own investments? The advice is the same. Look at the data. Don’t make emotional decisions. Realize the U.S. economy and markets are largely disconnected from politics. And keep an eye on the long term. No matter how you feel about either administration, investing is a game of decades during which we will have a wide range of politics.

Let’s block ads! (Why?)



Source link

Politics

Moe visiting Yorkton as Saskatchewan election campaign continues

Published

 on

 

Saskatchewan Party Leader Scott Moe is set to be on the road today as the provincial election campaign continues.

Moe is set to speak in the city of Yorkton about affordability measures this morning before travelling to the nearby village of Theodore for an event with the local Saskatchewan Party candidate.

NDP Leader Carla Beck doesn’t have any events scheduled, though several party candidates are to hold press conferences.

On Thursday, Moe promised a directive banning “biological boys” from using school changing rooms with “biological girls” if re-elected.

The NDP said the Saskatchewan Party was punching down on vulnerable children.

Election day is Oct. 28.

This report by The Canadian Press was first published Oct. 18, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Politics

Saskatchewan Party’s Moe pledges change room ban in schools; Beck calls it desperate

Published

 on

 

REGINA – Saskatchewan Party Leader Scott Moe is promising a directive banning “biological boys” from using school changing rooms with “biological girls” if re-elected, a move the NDP’s Carla Beck says weaponizes vulnerable kids.

Moe made the pledge Thursday at a campaign stop in Regina. He said it was in response to a complaint that two biological males had changed for gym class with girls at a school in southeast Saskatchewan.

He said the ban would be his first order of business if he’s voted again as premier on Oct. 28.

It was not previously included in his party’s campaign platform document.

“I’ll be very clear, there will be a directive that would come from the minister of education that would say that biological boys will not be in the change room with biological girls,” Moe said.

He added school divisions should already have change room policies, but a provincial directive would ensure all have the rule in place.

Asked about the rights of gender-diverse youth, Moe said other children also have rights.

“What about the rights of all the other girls that are changing in that very change room? They have rights as well,” he said, followed by cheers and claps.

The complaint was made at a school with the Prairie Valley School Division. The division said in a statement it doesn’t comment on specific situations that could jeopardize student privacy and safety.

“We believe all students should have the opportunity to learn and grow in a safe and welcoming learning environment,” it said.

“Our policies and procedures align with the Canadian Charter of Rights and Freedoms, the Canadian Human Rights Act and the Saskatchewan Human Rights Code.”

Asked about Moe’s proposal, Beck said it would make vulnerable kids more vulnerable.

Moe is desperate to stoke fear and division after having a bad night during Wednesday’s televised leaders’ debate, she said.

“Saskatchewan people, when we’re at our best, are people that come together and deliver results, not divisive, ugly politics like we’ve seen time and again from Scott Moe and the Sask. Party,” Beck said.

“If you see leaders holding so much power choosing to punch down on vulnerable kids, that tells you everything you need to know about them.”

Beck said voters have more pressing education issues on their minds, including the need for smaller classrooms, more teaching staff and increased supports for students.

People also want better health care and to be able to afford gas and groceries, she added.

“We don’t have to agree to understand Saskatchewan people deserve better,” Beck said.

The Saskatchewan Party government passed legislation last year that requires parents consent to children under 16 using different names or pronouns at school.

The law has faced backlash from some LGBTQ+ advocates, who argue it violates Charter rights and could cause teachers to out or misgender children.

Beck has said if elected her party would repeal that legislation.

Heather Kuttai, a former commissioner with the Saskatchewan Human Rights Commission who resigned last year in protest of the law, said Moe is trying to sway right-wing voters.

She said a change room directive would put more pressure on teachers who already don’t have enough educational support.

“It sounds like desperation to me,” she said.

“It sounds like Scott Moe is nervous about the election and is turning to homophobic and transphobic rhetoric to appeal to far-right voters.

“It’s divisive politics, which is a shame.”

She said she worries about the future of gender-affirming care in a province that once led in human rights.

“We’re the kind of people who dig each other out of snowbanks and not spew hatred about each other,” she said. “At least that’s what I want to still believe.”

Also Thursday, two former Saskatchewan Party government members announced they’re endorsing Beck — Mark Docherty, who retired last year and was a Speaker, and Glen Hart, who retired in 2020.

Ian Hanna, a speech writer and senior political adviser to former Saskatchewan Party premier Brad Wall, also endorsed Beck.

Earlier in the campaign, Beck received support from former Speaker Randy Weekes, who quit the Saskatchewan Party earlier this year after accusing caucus members of bullying.

This report by The Canadian Press was first published Oct. 17, 2024.

— With files from Aaron Sousa in Edmonton

Source link

Continue Reading

Politics

Promise tracker: What the Saskatchewan Party and NDP pledge to do if they win Oct. 28

Published

 on

 

REGINA – Saskatchewan‘s provincial election is on Oct. 28. Here’s a look at some of the campaign promises made by the two major parties:

Saskatchewan Party

— Continue withholding federal carbon levy payments to Ottawa on natural gas until the end of 2025.

— Reduce personal income tax rates over four years; a family of four would save $3,400.

— Double the Active Families Benefit to $300 per child per year and the benefit for children with disabilities to $400 a year.

— Direct all school divisions to ban “biological boys” from girls’ change rooms in schools.

— Increase the First-Time Homebuyers Tax Credit to $15,000 from $10,000.

— Reintroduce the Home Renovation Tax Credit, allowing homeowners to claim up to $4,000 in renovation costs on their income taxes; seniors could claim up to $5,000.

— Extend coverage for insulin pumps and diabetes supplies to seniors and young adults

— Provide a 50 per cent refundable tax credit — up to $10,000 — to help cover the cost of a first fertility treatment.

— Hire 100 new municipal officers and 70 more officers with the Saskatchewan Marshals Service.

— Amend legislation to provide police with more authority to address intoxication, vandalism and disturbances on public property.

— Platform cost of $1.2 billion, with deficits in the first three years and a small surplus in 2027.

NDP

— Pause the 15-cent-a-litre gas tax for six months, saving an average family about $350.

— Remove the provincial sales tax from children’s clothes and ready-to-eat grocery items like rotisserie chickens and granola bars.

— Pass legislation to limit how often and how much landlords can raise rent.

— Repeal the law that requires parental consent when children under 16 want to change their names or pronouns at school.

— Launch a provincewide school nutrition program.

— Build more schools and reduce classroom sizes.

— Hire 800 front-line health-care workers in areas most in need.

— Launch an accountability commission to investigate cost overruns for government projects.

— Scrap the marshals service.

— Hire 100 Mounties and expand detox services.

— Platform cost of $3.5 billion, with small deficits in the first three years and a small surplus in the fourth year.

This report by The Canadian Press was first published Oct .17, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending

Exit mobile version