How to Win This Election
Happy Halloween from Wealthy Retirement!
In this week’s edition of the popular YouTube series State of the Market, Chief Income Strategist Marc Lichtenfeld covers something that’s got investors across the political spectrum spooked…
Next week’s decisive 2020 election.
As the COVID-19 pandemic rages on, investors on both sides are concerned about what this coming Tuesday will mean for their portfolios.
Some are flush with holdings that rely on a “pro-business” president who’s lax on regulations…
While others have already been banking on a Biden presidency, as we’ve seen lately with renewables’ spectacular rally.
But as Marc explains in this week’s video, the market is rarely that straightforward.
For instance, regardless of who wins, Marc believes we could see a “sell the news” reaction, where investors who see the market turn their way take profits before it has a chance to zigzag again.
And COVID-19 has already proved how unpredictable the coming months could be…
But it’s not just the future that has investors bamboozled. As Marc reveals, we’re overlooking critical trends from the past as well…
For instance, conventional thinking has it that a Republican president is by default a more positive influence on the stock market (even if not the economy).
But that hasn’t always been the case…
Since 1952, the stock market’s performance during Democratic administrations has outshone its performance during Republican administrations. Historically, Democratic administrations have seen double the average stock market return.
And while President Trump does sport the sixth-best stock market performance of past presidents going back 100 years…
The truth is, he’s in varied company, joined by a host of more progressive presidents from recent history.
In fact, he’s bested by Franklin Roosevelt, Dwight Eisenhower, Calvin Coolidge, Bill Clinton and Barack Obama.
It all goes to show that it will serve investors best to remain calm – and that conventional thinking might not serve us best…
The Only Way to Win This Election
As Marc explains in this week’s video, the only way to win this election season is to be prepared for anything – and to have faith in the market’s long-term potential.
While he shares some of his top sector picks based on each possible outcome, Marc says that the market is not as straightforward as investors like to think – and the best way to score big is still to stay invested for the long haul.
So regardless of what happens next Tuesday, don’t let the high tensions this election season get you spooked.
Rebalance your portfolio to ensure you have a healthy mix of income generators and stocks from every sector, then lock in and hold on tight.
And most importantly, keep an eye on Marc’s weekly updates. He’ll help you interpret what each twist and turn in the news cycle means for your portfolio – both in the short term and over the coming years.
Click here to watch this week’s State of the Market video.
Good investing,
Mable