Fear and Loathing in Washington, DC
David Greene, CFP®, Principal
David Greene will deliver a special Bernstein presentation. Here is just a preview:
Is fear good for voters? I don’t know. But I do know how fear impacts investors. And I’ll talk about that next week. For example, did you know that when Republicans hold the White House, investors who self-identify as Republicans significantly outperform investors who self-identify as Democrats? And when Democrats hold the White House, investors who self-identify as Democrats outperform other investors?
Why? Fear! Good investors aren’t fearless – but they are able to distinguish real risks from imagined risks. That’s essential to good investing. I’ll quantify that in the presentation next week.
I’ll be talking about all this next week: I’ll discuss why the markets swooned last month – and why, even after they have fully recovered, we still don’t think they are overvalued. Indeed, The New York Times on Sunday published a very good piece focused on Bernstein’s Chief Investment Officer Seth Masters, discussing his 2011 prediction that the Dow would hit 20,000 by 2022. That was a bold prediction then, when the Dow was trading around 11,000. We’ve now moved that prediction forward – we expect a 20,000 Dow by 2018.
Why? I’ll tell you next week.
I’ll talk about interest rates – when the Fed will start raising them, and why. And what that means for the markets.
And, importantly, I’ll be talking about taxes. This is the time to be planning for April 15, 2015. This is when you can actually do something to lower your tax bill for 2014. Something like, for example, donating to your favorite 501(c)(3) organization. An organization, like, for example, the Harvard Club of Washington, DC.
We have so much to discuss. And if I don’t manage to cover everything in my brief presentation – I promise to keep it brief, so that no one is bored – I’ll answer questions until our guests run out of questions to ask . . . .
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Fear and Loathing in Washington, DC, w/ David Greene AB '91, MBA '96