Investors in Republican areas avoid companies led by Democrat-leaning chief executives, while Democrat counties invest more heavily in technology companiesSuffering lower returns because of your political views is simply stupid, says analyst Joachim Klement. Photograph: Samuel Corum/AFP via Getty ImagesCulture wars aren’t just affecting US politics – they’re affecting people’s investments.
Political polarisation has been an increasing issue in the US since the mid-1990s, the study notes, but it wasn’t until 2013 that it started to increasingly affect investors’ portfolios. Why 2013? The researchers link it to the rise of conservative media, noting portfolio polarisation invariably increased every time the Sinclair Broadcast Group, a large conservative TV network, moved into a local market.
Commenting on the study, Liberum strategist and blogger Joachim Klement says he has no idea whether oil and gas stocks will outperform tech companies in coming years, but one group of investors will likely end up with lower long-term returns.