The great thing about the United States is that diversity wins time and time again. As the sage (or at least humorous) philosopher, Jon Stewart mused in this past weekend's sardonic summitin Washington D.C., things do get done in this country. While we fight amongst each other, that doesn't mean that we must vilify those that disagree with our views. And that’s why in the end, this country has succeeded; debate and balance has worked even if it slows change.
That's the beauty of the democratic system that has stumbled forward in this country for over 200 years. Maybe that’s why Warren Buffet is so bullish on this country. And maybe that’s why, despite initial leanings towards foreign assets, Berkshire Hathaway is still basically invested in United States stocks. He’s a believer.
So, as you watch the coverage this election night and the pundits debate whether states go red or blue or any other color of their choosing, remember that more balance will lead to clarity. Whatever changes might be coming will be less cataclysmic and more incremental. You might not agree that this is the best path for the country but it does create some certainty for investors.
The road will be shrouded in less fog. And after three years of seeing the impossible come to pass with devastating results, maybe a little less change might not be the worst thing in the world for investors. Calm, gridlock, clarity; call it what you like but when this mid-term election is over, that’s what we will have.
Michael A. Yoshikami, Ph.D., CFP®, is Founder, President, and Chief Investment Strategist of YCMNET Advisors, Inc., a registered investment advisory firm (www.ycmnet.com). He oversees all investment and research activities of YCMNET. He is a respected lecturer speaking frequently on market issues, tactical asset allocation, and investment strategy. Michael and YCMNET were ranked as one of the top 100 investment advisors in the United States for 2009 and 2010 by Barrons. He appears regularly on CNBC and CNBC Asia and can be reached directly at firstname.lastname@example.org.