Second, 2020 should humble investors from drawing direct lines from the news or their lives to stock markets. Most expect the market narrative to match their worldview. Often, this approach allows fear to drive action. There are too many variables with too much unpredictability, uncertainty, and potential bias for anyone to reliably draw these lines.

Most everyone is tired of hearing about the election. We are too. Still, considering the event’s significance and our conversations with worried investors, we want to share some thoughts and information.

Last year reminded everyone that investing is hard. It can be uncomfortable and unpleasant. Market volatility can diminish willpower and cause determination to waver. The main risk is not portfolio declines. The real risk is that instincts override the discipline investors need to achieve their long-term plan.

In the short term, markets are about Psychology;

in the medium term, they are about Economics;

and in the long term, they are about Valuations.