Just when you thought astronomers had seen it all, something comes along that cannot be explained by the traditional body of science.

A group of astrophysicists published a paper entitled "Unexpected Circular Radio Objects at High Galactic Latitude." The paper's synopsis pretty much says it all:

"We have found an unexpected class of astronomical objects which have not previously been reported, in the Evolutionary Map of the Universe Pilot survey, using the Australian Square Kilometre Array Pathfinder telescope. The objects appear in radio images as circular edge-brightened discs about one arcmin diameter, and do not seem to correspond to any known type of object. We speculate that they may represent a spherical shock wave from an extragalactic transient event, or the outflow, or a remnant, from a radio galaxy viewed end-on."

In other words, not an alien spaceship, which - at this point in 2020 - would not surprise us at all, but still, the discovery is fascinating. And it may change the course of astronomy.

And speaking of something we have never seen before, we recently read an interesting observation about investment returns and U.S. government political control that goes back to 1881. Given we are about to enter the political election season, we have seen these studies before - studies that show how the U.S. equity market performs under different political parties - but never one that goes back 140 years!

Michael Darda of MKM Partners did the math and came up with the following:

Period Avg. S&P 500 Return Per Annum
1881-2020, All Years 6.40%
Dem Control (7 Periods) 6.70%
Rep Control (7 Periods) 9.90%
Split Govt. (14 Periods) 5.20%

The rational takeaway from this study is that it’s never smart to broadly change your investment view solely because of which party controls the government. That is not to say that government policy does not matter (it does), but our system of checks and balances works. It may be a costly investment mistake to wholesale change your investment approach if you believe the Democrats will sweep in November or the Republicans will keep control.

The views expressed represent the opinion of Sequoia Financial Group. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Sequoia believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Statements of future expectations, estimates, projections, and other forward-looking statements are based on available information and Sequoia’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. Past performance is not an indication of future results. Investment advisory services offered through Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Registration as an investment advisor does not imply a certain level of skill or training.

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Investment advisory services offered through Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Registration as an investment advisor does not imply a certain level of skill or training.

On New Galactic Discoveries & Political Regime Investment Returns | Sequoia Financial Group

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