As we gear up for another round of elections, Americans may be feeling anxious, overwhelmed, or even "checked out." These feelings are understandable given the uncertainties around what lies ahead—whether it’s the market, global tensions, humanitarian issues, or concerns about personal security. However, heightened stress can cloud our judgment, making it harder to make thoughtful decisions in challenging times. High stress levels can lead to reactive behavior, jumping to conclusions, and decreased cognitive function—none of which are ideal for savvy investing.
Even if you’re not fully tuned into election coverage, its outcomes could still affect your security and future. So, what can you do to navigate this period more calmly and effectively?
Manage Stress by Focusing on the Present
Think of election stress like a three-dimensional pyramid, with facets labeled Past, Present, and Future. Elections can provoke stress across all three: past events shape the present, and present decisions impact the future. While we can’t change the past or predict the future with absolute certainty, we can focus on managing the present.
If you want to stay steady as election season approaches, acknowledge the influence of the past and how current events shape the future, then take practical steps to manage the present.
Consider These Approaches:
- Reassess Your Media Consumption: Be mindful of how much news you’re consuming. Sensational headlines grab attention, and social media is often filled with misinformation. Limit your exposure to the 24-hour news cycle.
- Set Boundaries: Consider scheduling specific times to read the news, such as in the morning for a set period, and avoid consuming it before bed to protect your sleep.
- Stay Focused on Your Long-Term Investment Strategy: Remember that the market tends to yield positive results over time. Stay invested, remain diversified, and accept that volatility often accompanies periods of uncertainty.
- Avoid Making Decisions Based on Predictions: It’s tempting to act on hunches about political candidates, but basing financial decisions on speculative predictions can be costly.
- Prioritize Wellbeing: Take care of yourself. Focus on getting enough sleep, regular exercise, and balanced nutrition. Make time for recreation, solitude, and socializing.
- Engage Mindfully in What Matters: Focus on actions that support the causes you care about. While you can’t control everything, you can make a positive impact in areas that align with your values.
What to Watch Out For:
- Don’t Let Election Stress Drive Financial Decisions: Remember that markets have historically rebounded and performed well over the long term.
- Avoid Hyper-Focus on Short-Term Market Movements: Obsessing over daily market shifts won’t serve your long-term goals.
- Be Aware of Rumination: It’s easy to dwell on problems, but try to shift focus to actionable solutions.
- Resist Action Bias: Taking action just for the sake of it, especially under stress, can lead to hasty and misguided decisions.
- Draw a Line Between Being Informed and Overwhelmed: Decide how much information is enough for you, and stick to it.
Regret won’t change the past, and anxiety can’t control the future. By focusing on what we can manage in the present, we can set a better path forward. Take care of yourself, and stay steady during these times.