Election Day: Here’s What It Means for Your Investments
Every media company has bombarded you with “what this election will mean to you.”
They focus on the agendas of President Trump and Joe Biden.
Then they give you their slant on what it could mean for your everyday life.
This isn’t one of those articles.
I’ll come right out and say it.
Regardless of which party is in office, whether you love them or hate them, America is still the greatest country in the world.
It’s a tough pill to swallow if your party loses, but it’s the reality.
And when you want to know what this election will mean for your investment account, it’s the most important part to understand…
Elections Matter — But Not How You Think
Look, the truth is that it doesn’t matter which party is running the country.
I’ve studied the stock market around different presidents since 1945. And the biggest conclusion you can take from it is that you don’t see a big difference between which party controls the White House.
And that’s great news.
It means that America continues to move forward with either party at the helm. And we’re already seeing entrepreneurs move to rebuild.
Historically, election years are bullish for the stock market. Even this year, with a global pandemic, we are in a position to cap off another positive election year if we see stocks climb after the election.
As you have seen, there’s a lot of noise in the days leading up to the election. And we could be seeing it for a few more days if the race is as close as predicted. But once the president is elected, whether it’s later tonight or in a few days, it gives the stock market a sense of certainty.
Based on past elections, we can tell that investors will wait to see who wins. Then they’ll flood money into stocks, pushing the market higher from November till the end of the year. This is the historical trend during an election year.
This year, even though the country has had to literally shut itself down to deal with the coronavirus pandemic … the market and economy are still thriving.
The S&P 500 is up 45% since the March lows. The economy just recorded record growth as it looks to bounce back from the pandemic.
Now we have an election that will pave the way for even bigger gains in the coming weeks.
Just remember this: The stock market is the No. 1 wealth creation tool for Americans.
You Can Still Profit
So don’t get spooked by negative news headlines. At American Investor Today, we always work to bring you the news you need to make intelligent investments.
There’s going to be a lot of noise in the coming days around the tight election race.
At the end of the day, just know that America will still be on a path to success.
And your No. 1 way to profit from that is in the U.S. stock market.
If we get a dip on any price action related to election worries, even if it is after the president is announced, use it to your advantage.
Look at an industry like semiconductors. It doesn’t matter who’s in the White House — the tech industry is going to continue to grow, and chip stocks are leading that growth.
VanEck Vectors Semiconductor ETF (Nasdaq: SMH) is a simple exchange-traded fund (ETF) which holds 28 of the largest semiconductor stocks listed in the U.S. These are top of the line stocks in the industry that give you broad exposure to the growth the sector is seeing.
Lots of people are panicking right now, but you won’t be one of them. Use this volatility to your advantage to partner with great companies at great prices and grow your wealth for generations.
Chad Shoop, CMT
Editor, Quick Hit Profits