Group 1 - Political bias is distorting investors' perceptions of economic risks, particularly during the Trump administration, leading some clients to prioritize emotions over rational investment strategies [1][2] - Sharmin Mossavar-Rahmani, head of the Investment Strategy Group at Goldman Sachs, noted that some clients are incorporating political factors into their investment portfolios, which may cause them to succumb to "noise" rather than maintaining a clear long-term strategy [1][2] - A Pew Research Center study indicated that only 10% of Democrats expect the economy to improve in the next 12 months, while 64% anticipate it will worsen, contrasting with the more optimistic views of Republicans [2] Group 2 - Mossavar-Rahmani highlighted that political interpretations vary significantly based on personal biases, with Democrats often viewing the current administration's actions negatively, while Republicans may perceive them more favorably [2] - The impact of political bias on investment strategies is evident even within families, as differing political views can lead to conflicting investment decisions [3] - Despite market volatility, the emotional reactions of retail clients are stronger than the market's response, as indicated by the VIX volatility index, which remains lower than during the global financial crisis [3]