Should Investment Advisors Be Political?

Recently some of readers of this newsletter and blog have commented that they don’t want our political commentary – only our investment advice. Unfortunately how can we or any investment adviser ignore the weight that government now has on capital market activity? Who is the largest owner of General Motors? Where are over 90% of the new jobs coming from? The free market is still trying to work – unfortunately as unpleasant as it might be it is our role to remind investors of all types the significance that government now has in open market activities. This is not a criticism of our Democratic administration or the past Republican administration – it is only questioning whether or not our government has grown out of control when it takes over a major corporation and the central bank has overwhelming authority on credit policies. Should we citizens always be suspicious of government action of all sorts from all parties? Do you want your investment adviser to point out the political realities and risk that will directly impact the value of your portfolio?

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