Common investing mistake to avoid in the Trump years [Video]

Investors move markets based on what they expect to happen in the future. If you’ve read enough about the incoming administration or the state of artificial intelligence or the historical economic impact of tariffs, you may think you have a pretty good idea of what’s coming over the next four years.

But if you plan on calibrating your portfolio according to your assumptions, you could be falling into a classic investor trap, says Ryan Detrick, chief market strategist at the Carson Group. The reality is, it’s rarely easy to draw a straight line from an incoming government’s policy proposals to certain types of companies that will benefit.

“When President Biden took office, everyone thought he was gonna be great for green energy and terrible for dirty, old crude,” he says. “Well, take a wild guess. Energy is [one of] the best performing sector[s] under Biden.”

Meanwhile, during the duration of President Donald Trump’s first term, energy stocks …