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Barry Ritholtz

What Happens When Business and Politics Mix

If a decision expands the potential customer base, the result can be positive.
What would you do?

What would you do?

Photographer: Kevin C. Cox/Getty Images

I have long cautioned readers about the dangers of mixing politics with their investing. Politics is so emotional, so tribal, that it can easily cloud an investor’s thinking. Anything interfering with factual and logical analysis will disrupt even the best decision-making processes. Indeed, changes to your investment strategy based on hot emotions rarely work out.

But what about when politics affects how corporate executives make their decisions? There are dangers and opportunities when hot-button topics are mixed into a business model.