You know what the ugly political campaigns we’re witnessing make me think of? Passive index funds.
Let me explain. First, the politics. It’s been an unprecedented political season with voters bitterly divided between Donald Trump and Hillary Clinton — a contest pitting populist conservatism against establishment liberalism, the outsider against the insider. Whoever wins on Tuesday, both candidates’ high unfavorable ratings make it mathematically guaranteed that most Americans will be disappointed on Wednesday morning.
How did we get here? Trump and Clinton are among our biggest public figures, with well-known shortcomings. Alas, most of us are so passive that when it comes to voting and political involvement, the primary process favors big-name candidates, regardless of their flaws.
Only a relatively small number of deeply engaged activists choose their party’s champion. To a point, that’s not entirely bad. After all, most voters have busy lives. The system is set up to work well even if the vast majority of us don’t make politics our top priority. However, politics works best when we all contribute. If you meet a voter feeling good about the election, ask whether they voted in the primary, made a donation or volunteered. The answer is almost always: Yes.
The problem is that so many Americans are totally disengaged — only 57.6 million people, or 28.5 percent of eligible voters, cast their vote in presidential primaries, according to Pew Research. Even on Election Day, only about half of us will…
The post What Can Investors Learn From This Bitter Political Season? appeared first on Liberty Investor™.