Trump comes out victorious. If President Trump is re-elected on November third, it is expected the market will rally.
Biden comes out victorious. If Biden is elected president on November third, it is expected the market will fall or stagnate.
It takes multiple days to count all the mail-in ballots while either Trump or Biden falsely claim a pre-mature victory. The country goes into a politically induced tantrum over a “failed democracy” and the market free falls into an uncertain future.
Besides the fact some grown adults may cry, or throw a fit depending on who is elected, whether Biden or Trump wins, innovation, capitalism, and the aspiring entrepreneurs of the future will continue to push forward. Great companies will continue to sell their products, people will continue buying them, and the market will provide exceptional opportunities to those willing to do the sleuthing.
The third scenario is the more nerve racking one. If the country does not have an elected president sometime late November third, or early November 4th, I could see a bad situation playing out where both sides claim a false victory. The voters, not yet having an answer will be upset and feel defrauded. The news media will run this as the end of democracy. Fear and panic ensure, and the market tanks. So, what do you do regarding these potential possibilities?
Anytime you have a big macro event that affects the market in a negative way, I see it as a buying opportunity. Volatility is a friend to the long-term investor, and it allows shares to be picked up at bargain prices. At the moment the market seems to be pricing in a bit of uncertainty, and possibly, a Biden presidency. I don’t think the market has priced in a Trump victory, or no president at all, with post office workers frantically counting votes. So my advice is to stay calm, possibly hedge out a few positions, and get ready to buy the dip.
I will be watching to see if a few stocks hit some key buying levels. If the market goes further into the red, names like $CRWD, $AYX, and $CHWY come to mind as stocks I would gladly add to the portfolio. All these businesses will continue to excel under any administration. And since we are brushing up against politics, remember that America is a constitution republic. We are only a democracy when it comes to electing representatives that are sworn to uphold the constitution. We do not simply take the majorities word on issues (thank God). So relax, and focus on what you can control.
This blog is based on my own personal opinions and views and should not be taken as professional investment advice. Market speculation is very risky, and you should do your own research before deploying capital. Any action you take upon the information provided on this website is strictly at your own risk.