![]() And now he’s going to give it away, for free. He recently made a bold statement, telling a select group of readers that he’s found one trade that is completely “election-proof”. Because if his track record says anything, then it pays to listen to what he has to say. ![]() That’s where my colleague Jim Fink comes in. In the meantime, if you’re like most traders or investors, then you can’t be too sure of anything these days… If we stick to our strategy, leave politics (and our emotions) aside, we should continue to see wonderful success. We will stick to our buy and sell signals, and continue to exploit great trade opportunities. Remember, we want to leave our emotions out of investing. After all, it is the emotions and behavior of investors that create part of the momentum equation.Īs we make our way towards election day, don’t let the election - or the election outcome - be the guiding force for your trading strategy. ![]() We know that investor behavior can make stocks march higher than many expected. But we must approach the market with some level of objectivity. Their policies and actions can affect commodity and equity prices as well as interest rates, like entering a war or implementing subsidies or tariffs on goods. Now, I don’t want to suggest that presidents are irrelevant to markets and the economy. In other words, c ompanies will continue to prosper and generate cash flow. Pharmaceutical companies will continue to churn out medicine, develop new drugs, and pioneer new vaccines. Healthcare companies will continue to develop new products and solutions for patients. The Takeawayīut I’m confident that regardless of who wins, one thing is certain… Technology companies will continue to innovate and produce smaller, faster chips. This time around, we could see market volatility heighten as the market digests the winner and what it might look like for the economy and publicly-traded corporations. But by the time the markets opened the next day in the United States, the major indexes had already recovered most of those losses. When that didn’t happen, the markets initially tumbled. Headed into the 2016 election, it was a near certainty (according to every poll, political talking head, and media outlet across America) that Hillary Clinton would become the 45 th president of the United States. If there’s anything the markets don’t like, it is uncertainty. S&P 500 futures tumbled 5%, hitting a limit designed to halt further drops, and the Dow futures were down as much as 900 points. When President Trump shocked the world and won the 2016 election, U.S. ![]() Take the last presidential election for example… It will simply digest the news and move on. How The Election Could Affect The Market (Or Not)īut here’s the thing… the market doesn’t really care who you vote for. Rumblings from both sides - and all these new traders - would have you believe that stocks will perform terribly should their opponent get elected. There’s no doubt that this will be a contentious election (again). That was after the brokerage added 608,000 in the first quarter.Īs my friends now more eagerly want to talk about stocks (and how great they’re doing trading them), one comment - more likely a concern - keeps creeping into the conversation… the upcoming presidential election and its impact on the stock market. For instance, TD Ameritrade alone added a record 661,000 new retail accounts in the second quarter. New traders and investors have come in droves to try their hand at striking it rich. This was spearheaded by the popular retail brokerage app, Robinhood. But it’s been ushered in by downtime from the coronavirus, and the commission-free trading that the majority of brokerages now offer. The surge in retail investors lately has been impressive and a little unexpected. A few others that were handed early retirement pensions due to the coronavirus are trading stocks as a new hobby. It turns out that many of my friends that had no prior interest in stocks are now “day traders.” Some even dabble in options.
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