Growing up, Election Day was always a big deal in my house.
My mother taught us from a very young age that as citizens of this great country, it is our civic duty to have a say in who governs us.
Mom would read up on each candidate, study their positions on issues important to her values, and proudly vote.
Some years, she would take me and my brothers along. It was a big thrill.
And after she voted, on our way home, we’d walk past the bakery and she’d buy us a black and white cookie and a Sunny Dew drink. Boy, nothing ever tasted so good.
My grandparents, my mother’s parents, also took Election Day seriously … but for a different reason.
In 1922, my grandparents bought steerage tickets and boarded a ship that would take them from Russia to America.
They were escaping religious persecution and economic hardship. My grandfather used to tell me how, in Russia, they actually believed the streets of America were paved with gold.
When they arrived on these shores, the reality was quite different. But that didn’t dissuade them one bit.
I recall them telling me that when they arrived at the immigration center in Ellis Island, they could smell the freedom in the air.
So Election Day is a very nostalgic day for me filled with meaning on so many different levels.
After the election results come in next week, no matter the outcome, know this: my faith in our system of government is stronger than ever and so should yours.
As for your portfolio, the election isn’t a pattern you need to follow. But there’s one that I do recommend you watch.
Why Momentum Beats Seasonal Patterns in the Long Run
“Sell in May and go away” is an old Wall Street saying I first saw in the Stock Trader’s Almanac.
They analyzed S&P 500 data and found the best returns were from November to April, suggesting you should sell in May and come back in November.
Many traders follow this idea closely, investing less during the “weaker” months.
I’ve always been skeptical of these shortcuts. They’re just patterns with no real reason to expect they’ll keep working.
I prefer trading based on patterns that actually make sense in the stock market.
That’s why I built a system around momentum, which taps into a pattern where investors tend to underreact to good news, creating opportunities.
Our system leverages the “disposition effect” — a tendency for investors to sell stocks that have gained instead of letting them run.
For close to 100 years, momentum has outperformed other strategies. You can see that momentum dominates the stock market over the long term:
And not just in stocks but across asset classes, countries and even commodities and currencies.
In the end, investing isn’t about following old sayings or seasonal patterns.
It’s about finding real, consistent strategies that make sense in all market conditions.
With Profit Accelerator, we’re focused on capturing steady momentum and letting winners run, no matter the time of year.
To see more about my system, go here. I’ll share all the details with you.
Regards,
Charles Mizrahi
Founder, Alpha Investor
