Hedging Against Politics

We talk about hedging against inflation by investing in certain cyclical and noncyclical sectors. What the public doesn’t discuss is the topic of hedging against politics. The topic of inflation has been a topic for a couple of weeks now across the news stations as well within the financial markets. We talk about hedging against inflation by investing in certain cyclical and noncyclical sectors. What the public doesn’t discuss is the topic of hedging against politics. Inflation is predictable to a certain extent. What the politicians say or do can be very unpredictable. Most recently, the CDC relaxed mask requirement. You and I both know that was politically driven. If you had the vaccine, you may go without a mask. My wife and I both had the Johnson and Johnson vaccine and we both caught the virus after the fact. You hear that we are following science. That is nonsense. This virus has been political from day one and really became profound during the 2020 election. We see the conflicts rising in the Middle East with Israel and Hamas. The United States is silent, yet still funding those people who are attacking Israel. What are we to do with the bumbling government in regards to our stewardship. The best advice still comes from King Solomon.

Ecclesiastes 11:2 Give a portion to seven, and also to eight; for thou knowest not what evil shall be upon the earth.

Diversification is still the answer and always will be. While you are diversifying your portfolio, focus on being Biblically Responsible in the process and avoid those companies that support and profit from activities that are contrary to your faith.

Speak Your Mind

*