David Fleer
Bristlecone Value Partners, LLC
12301 Wilshire Blvd., Suite 320
Los Angeles, CA 90025 USA
Work 1-877-806-4141

Monthly Digest – September 2012

September 17th, 2012

Every four years, as we get closer to the November elections (what elections?), we receive an increasing number of calls or emails from our clients asking about the consequences of a victory for a particular candidate on their portfolio. Every four years, we also get the occasional request to “go to cash” because of the impending disaster looming if one’s favorite candidate is not elected.

The outcome of the election has little effect on our investment outlook, because the US government and the American economic system have lots of checks and balances in place.  Our view and experience was supported in a recent article (Back to the Future: What’s at Stake for the Economy in the Obama-Romney Contest) by three professors at the University of Pennsylvania’s Wharton School. According to the authors, it is very unlikely that any candidate would win a clear majority that would allow him to pass all of his platform legislation. Additionally, other factors always weigh heavily on the economy and the stock market: the Federal Reserve, lobbying groups, businesses, foreign governments’ economic policies, etc. Read the rest of this entry »

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