In America, we are 55 days from the election for the next President. And based on the poll numbers and the constant political ads running on TV, this is going to be a close race. From the very beginning, this election has been dominated by economic issues. In polls, voters consistently rank the economy as their top concern. In a recent Wall Street Journal poll, just 47 % of Democrats — and only 4 % of Republicans — reported being “cautiously optimistic” about the economy.
In the spirit of this election cycle, we thought it would be a good time to clear up a question that comes up every election cycle, “Who is better for the stock market? A Democrat or a Republican?”
Our answer is and always will be: We don’t care.
In a speech to nearly 40,000 Berkshire Hathaway shareholder’s last April, Warren Buffett told American voters not to worry about the market or the economy. As far as he is concerned it doesn’t matter who wins the presidency. He said the country is headed in the right direction, and “no presidential candidate or president is going to end it.”
At Rich Dad, we don’t believe that a Republican or a Democrat residing in the White House determines what the markets are going to do either. If you look at the US Debt Clock, you’ll find that the U.S. has $101 trillion in unfunded liabilities. It’s not one party or administration that is responsible for it.
Looking at the CASHFLOW Quadrant, which represents how a person earns their income, a person who participates in the E quadrant probably thinks they should care. People who earn their money in the E quadrant often are participating in a 401(k) retirement account so they believe that having a particular party affiliation in the White House dictates how well their investment is performing.
Those with true wealth know how to make money regardless of what the markets are doing. The opportunity is the same no matter what. And really it doesn’t have to just be the wealthy. The point comes down to being financially educated or uneducated. The more you educate yourself about stocks and how money works, the less likely you’ll fall victim to the unworthy debate about Democrats vs. Republicans.
This is what makes Rich Dad different.
The Rich Dad Company