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Vanguard GNMA and a Winter of Political Polarization

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Anyone who tells you politics has nothing to do with investing is simply not paying attention. In this winter of political polarization—a deep freeze—politics matter.

Case in point. Look at Vanguard GNMA.

For most of 2018, Vanguard GNMA has been sledding from a peak of $10.45 in January.

Guess when the trough, or bottom was hit? November 6th the day of the midterm elections.

Since then, as you’ve witnessed, stocks have been twitching like a desperate squirrel working through that last nut for the winter.

Not Vanguard GNMA. It has been steady, up close to two-percent, closing at $10.19 since the midterms. Yesterday, when stocks lost 500 points, Vanguard GNMA made money.

Yes, it’s difficult to stick to an investment plan when everyone around you is a desperate squirrel. Their chewing can drive you crazy.

But, it’s better to take a deep breath and be happy you understand the principles of counterbalancing. Because the happiness you have from keeping your money far outweighs the desperation of making it and then losing it.

P.S. Investing well is a seven-day-a-week pursuit. Click here to read my father in law, Dick Young’s philosophy of working seven days a week to make money and investing seven days a week to keep it. You’ll be glad you did.

Originally posted on Your Survival Guy.

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E.J. Smith - Your Survival Guy

Preparing your investments and family for when disaster strikes.
E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.