By: Jeffrey A. Harrell, CFA

With the U.S. election rapidly approaching, investors have begun bracing themselves for what is sure to be another vitriolic presidential campaign. Commentators across all media outlets are hyping this as a watershed event that will reshape the country for decades to come. This type of rhetoric can plant fear in the minds of investors as many of these “experts” are recommending dramatic portfolio changes based on the outcome. Unfortunately, making decisions based on an emotional response can often wreak havoc to an investor’s portfolio.

Now to be fair, the upcoming election is very important. After all, we are still facing a global pandemic with an uncertain outcome. Racial tensions are high, and the country is extremely divided politically. Tensions abroad are...