Guest cherzeca Posted July 6, 2020 Share Posted July 6, 2020 there is a saying in NYC that the reason why there are several very wealthy real estate families is that it was too hard for them to sell their holdings. in today's WSJ, an author countered the notion that one's portfolio decisions should take into account one's political convictions. his point is that equity markets have been resilient and consistent through potuses of various stripes. his suggestion is essentially to leave the major portion of your portfolio unaffected by political orientation and, if this abstinence is too hard, set up a small "play" account to act on your political insights: "2. Set up a play-money account. Many advisers view small trading accounts as a waste of time and a surefire way for clients to lose their money. I’ve learned over time that these accounts actually serve an important psychological purpose; Investors can scratch their trading itch without blowing up their portfolio. In an election year, an investor can set aside a small portion of their investable assets (no more than 5%) to invest based on their political preferences. If things work out, great. If they don’t, the remaining 95% of their portfolio is still structured prudently." I think there is wisdom here, and that this is more generally applicable to one's portfolio beyond the realm of politics...could apply to various social/political/economic phenomena. agree? Link to comment Share on other sites More sharing options...
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