What I’m doing to prepare for the stock market during the election
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This is how to prepare for the stock market during the election and understand exactly what’s going on.
First, on Wednesday alone, we had the S&P500 fall by 3.5%. That is the the worst day that we’ve had since June. What’s different about this week is that we’ve had all 3 indexes go down in unison, including the DOW Jones and the NASDAQ. What we learned this week is that no investment is 100% safe – not even investments that are considered defensive.
For example, gold and silver were down this week. Digital currencies were down this week. Even tech stocks which we’ve learned do really well, lost value as well with Tesla down 4.3%, Facebook 5.5%, Amazon 3.7%, Apple 4.6%, Google 5.5% with the exception of Netflix.
All of this is happening because of 2 main reasons:
Reason #1, winter is coming, and the numbers are very real. Only 42% of people that were polled are comfortable going out to eat, 36% are comfortable going to a mall, only 33% are comfortable going on vacation which is also a reason why stocks like Carnival Cruise are down double digit percents, only 23% of people are comfortable going to the gym or the movies, and only 15% are comfortable traveling abroad ( source: https://bit.ly/3kEajbb ) As a result, 57% of people are saying they are considering restocking their supplies which might mean worse economic conditions for businesses.
Reason #2 elections which play a lot less of an important role in the stock market than people think. Since 1977 the economic growth rate average has been around 2.7% for the Republicans, and 2.9% for the Democrats. So it’s about the same regardless of which party comes into office but historically the market peaks 1 week before which is exactly where we are at. If you’re worried about your investments, your IRAs and 401k’s the most important factor to consider is not the election but rather – Congress. Here is some really interesting historical data dating back from 1950, all the way to 2019 (results include several years of the S&P 90 because the S&P 500 wasn’t invented until 1957)
Under a Democratic Congress, the S&P500 has averaged around 10.7% yearly returns. Under a republican congress, the S&P500 has returned 13.4%, that may not sound like that’s a substantial difference, but 2.7% per year over the course of 20, 30+ years is a huge huge difference, here is an example. If you started out with $100,000 and kept it in VTI, you would have ended with 4,349,022.32 under a republican congress versus 2,110,710.28 under the democratic one. But the best results have been under a split congress which returned 17.2% (more specifically the best combination has been a democratic president with a republican congress mix).
If we have a blue wave victory which could lead the stock market downward in the short term, here are some important things to consider and mistakes to avoid when investing.
#1 Don’t stop investing. I did a podcast with Graham Stephan where I showed quite a bit of cash but my situation is a little unique, unless you have a huge tax bill due or trying to buy some real estate, then continue investing.
#2 Follow the Fed and monetary policy. During the Bush Senior and Bush Jr. administrations, the stock market didn’t do too well. When the fed tightens up, the stock market doesn’t do as good. Alternatively, Clinton and Reagan did really well because of falling interest rates which happens when the Fed loosens up which is what we’re doing now, the stock market is very much supported by fed monetary policy so watch it closely.
#3 Regardless of who is president, the stock market does not care. Do not make the mistake of being what’s called a partisan investor. If you were to start investing in 1896, you would have ended up with significantly less money if you were waiting for your candidate to get elected versus investing the entire time.
Further research:
10 Truths No Matter Who Wins: https://bit.ly/2HOuB3y
Keys To The White House: https://bit.ly/3eittB1
*None of this is meant to be construed as investment advice, it’s for entertainment purposes only. Links above include affiliate commission or referrals. I’m part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.
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Jak se mas?
I'm sorry I will stick to day trading and consulting with my advisor over traditional investing and retirement savings.
Sorry for your loss brother!
Alice Watts trading platform are the best 💪
I got my earnings few hours ago and it's impressive and massive. I want to personally thank you Ms Alice for the financial advice you have been giving me since I started investing. You have been of immense help to me. Thank you
Don’t allow yourself to be distracted by the huge number of informations available from other traders & experts. You can spend all day reading other people’s idea and not be much better than you were when you started. I made over $250,000 with Mrs Christal Jackson.
I made my first million from trading stock , the woman who assisted me is Mrs Grace Breed Morgan we met at a trading conference and she accepted to trade for me , I've had no course to regret ever since
Can we just appreciate the magic tricks? I personally love them!
Funny, we know now how they predicted the out comes from the elections!!!!! They cheated!!!!
You changed my life. Thank you I love you.
These visual aid animations are so badass, they make the info so much easier to absorb. Thank you!
Great stuff. I watch several youtube videos on how to trade in the stock market but haven't made any headstart because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands.
He Flipped the chap stick
I’m 18 man trying to make the American dream for me and my future family. Your videos have been very influential, and I try to take the bread crumbs out of every video to place into my portfolio. God bless you and sorry about your grandparent. My condolences.
My condolences Andrei.
Jeremy and Graham live in Vegas, do you live there too?!?!
Do you reckon printing all this money and losing all those jobs will create a recession in the coming years and how will that affect the stock market?
I'm so sorry for your loss
Sorry Friend. May they Rest On High. Peace and Love.
So sorry for your loss, love your videos keep being yourself.
You said your forever alone well I am too!
I’m so fed up I invested i screwed up
If only we had you as a teacher in high school 😂😂
Love you dude
What do you do for a living?
Awesome and insightful updates 👏🏼👏🏼 Anyways when it comes to making money online, I say a very big yes in bitcoin trading and investment…Although the market has been a bit fluctuating, but for a good reason $14,000 support level has acted so strong and created more strength for uprise towards $15,000 region again. However in day trading with a working strategy/daily signals which I have been doing with the guidance provided by Thomas Kralow . Having traded with my 0.9btc with Thomas’s daily signals, I was able to accumulate and grow my portfolio to a total profit of 6.1btc which you will agree is a very good profits. So strongly advise day trading with such a working signals/strategy, Thomas can be reach via wha..ts…app +1 ..769… 20..864..01 for inquiries into profitable trading systems.
Prayers🥺..I just invested 15 dollars to Amazon 😅 I’m scared it’s my first time on cash app by the way
So you are saying the oil industry which grew in the past 4 years will be competely safe in the next 4 years ?
Love
Andrei, my condolences. All the YouTube and stock market noise really doesn't matter compared to ones you can't replace. Best wishes to you and your family.
Maan sorry your lose bro
Sorry to hear about your grandparent Andrei, my mom died from stage 4 lung cancer in February right before quarantine and I’m still finding ways to cope 😭 From your other videos it sounds like you had a great relationship with them, even if you never got a chance to formally say goodbye I think they know deep down in their heart that you love them ❤️ Take care and keep making these videos, the info and insight you provide is priceless to me and so many others!
Condolences Andrei.
Last statement really hit me, thank you for the wisdom.
Sorry for your loss.:(
The rich gets richer by spending like the poor and investing without stopping while the poor stay poor by spending like the rich and yet not even making any investment
Says that young people don't watch his videos me watching at age 13 👁👄👁
Sorry for your loss Andrie. Agreed, no amount of money can get you what you have now. And family always comes first!
You have great content and you are really good at making such a dry subject entertaining. Keep it up buddy!
My fiancée makes about a $1000 dividends on stocks with valuesstock@gmail,com over 20days. I came to realize these get rich quick schemes are false
I am so sorry, Andrei. Hang in there man, loosing a grandparent is very hard.
Don’t forget to play heads up seven up 👍🏼
How do we follow fed monetary policies? Where can we find out if they are tightening or loosening up?
Condolences on losing your grandparent – Thanks for all you do!!
Andrei, what's up with the crypto savings accounts like BlockFi? 8.6% APY? Sounds unreal
im 20 and I dont think your videos are boring at all.
That animation sequence at the end of the video is so rad! Do you do it yourself ? Which tool ?
Nano Dimension ? Thoughts
Sorry to hear about the lost of your grandparent. I follow you & your video & demeanor always puts a smile on my face:)