Welcome to Fix It Fridays on the Crazy Wealthy Podcast with Jonathan Blau, CEO of Fusion Family Wealth. In these quick, bi-weekly episodes, Jonathan unpacks common financial missteps and the behavioral biases that often trip up even the savviest investors. Today’s episode dives into the critical lesson of separating politics from investing. With insights from historical data and key moments in U.S. political history, Jonathan highlights why emotional reactions to elections shouldn't influence your financial decisions. Stay tuned for valuable takeaways, including a perspective from Warren Buffet on maintaining a steady investment strategy.
IN THIS EPISODE:
- [:57] Don’t mix politics and investing
- [3:01] History of both Bush administrations
- [4:46] History of bitter partisan elections
- [5:06] 1948 Election
- [6:49] Closing Statements YouTube video of Warren Buffet
KEY TAKEAWAYS:
- Mixing politics and investing is a mistake. Historically, long-term market returns have been consistent regardless of political party, averaging 10.7% under Democratic regimes and 10.5% under Republican ones.
- In 20 tracked decades, only one—2000 to 2009 under George W. Bush—saw flat market returns, driven by significant events like the dot-com bubble burst, 9/11, and the global financial crisis, rather than political affiliation. Interestingly, the best-performing decade, 1988 to 1997 under George H.W. Bush, delivered 18% annual returns, with stocks increasing fivefold.
- History shows that market performance over the next decade will likely be substantial, regardless of election outcomes. While this election has been highly partisan, bitter political divides are nothing new—dating back to 1803 when Vice President Aaron Burr fatally dueled Treasury Secretary Alexander Hamilton.
RESOURCE LINKS
Fusion Family Wealth - Website
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ABOUT THE HOST:
Jonathan is the President and CEO of Fusion Family Wealth, a firm he founded in 2013 that emphasizes behavioral finance to help clients make rational financial decisions in uncertain times. Known for his clear and engaging approach, Jonathan is a sought-after speaker in wealth management and investing. His background includes senior roles in tax and estate planning at Arthur Andersen, and he holds a BS in Finance, an MS in Taxation, and an MBA in Accounting. Based on Long Island with his family, Jonathan is active in the local business community and supports causes like the Middle Market Alliance and Sunrise Day Camp. He enjoys boating in his spare time.