The Iowa Debacle's Timeless Lesson for Investors

Three days after Iowans caucused for their Democratic presidential candidates of choice, we still don't know the results. A preliminary tally shows former South Bend Mayor Pete Buttigieg and Vermont Senator Bernie Sanders tied with 11 delegates each, Massachusetts Senator Elizabeth Warren claiming 5, and the remaining 14 waiting for a home. But after several days of chaos and reports of inconsistencies and errors, Democratic National Committee Chair Tom Perez has called for party officials to “recanvass” or double-check every caucus worksheet by hand. As we write, it is unclear whether the state committee will do so. On the surface, this saga isn't terribly relevant for investors. The Democratic nominee was impossible to predict before this comedy of errors began, and it will remain so for weeks after it is finished, given the wide-open field. But how we got here is, in our view, a shining example in the dangers of letting partisan bias influence your investment decision making.