Building Wealth Maybe she was paranoid by talking about her guns and jagged wine bottles... or maybe she was just being prepared.
I (Jeff Havenstein) was in California over the weekend visiting some family. I flew out of Baltimore/Washington International ("BWI") Airport and landed in Los Angeles International ("LAX") Airport. It was my first time flying since the COVID-19 outbreak, and I was expecting both airports to look like ghost towns. As Dr. David "Doc" Eifrig recently wrote, the airlines have been decimated over the past few months.
But that wasn't my experience. Both of my flights were sold out and the airport seemed pretty busy, with the typical long lines to get beer and a burger.
Things felt pretty normal – well, mostly normal... I still had to wear a mask for my five-hour flight. But I suppose that has become the new normal.
Seeing all the travelers in BWI and LAX surprised me. (This doesn't mean it's time to buy airline stocks... I agree with Doc that they still face a ton of problems.) But what surprised me the most about my trip was a conversation I had with one of my family member's neighbors...
She visited the house to drop off a bottle of her 2018 award winning Rosé (which was delicious by the way).
After a few minutes of neighborhood gossip, she started talking politics – a topic I try to avoid like the plague. But the conversation wasn't about who would win or her views on President Donald Trump or Joe Biden... She talked about what was going to happen after the election.
She mentioned there had been a lot of noise on social media about some potential not-so-peaceful protests around the area if a certain candidate won. Naturally, she was afraid.
She brought up the idea of leaving the area until after the election. She considered her parents' house in Michigan. But she said she would stay put because she has a couple registered guns in the house and plenty of wine bottles that she's not afraid to use if someone stepped on her property.
While she was mostly kidding about using wine bottles as a weapon, it did bring up an important point... A lot of people are afraid about the upcoming election.
They don't know what will happen. It's a pretty contested race with only a few days to go. And if there is a delay in announcing a winner, it could lead to chaos like the neighbor was afraid of.
The markets are also uneasy about next Tuesday's election. If there's one thing investors hate, it's uncertainty.
I've read lots of e-mails from subscribers over the past few weeks sharing concerns about the election. Some have asked if it's a good idea to sit in cash until the election is over. One subscriber was considering putting all of his portfolio in gold for the foreseeable future.
My opinion... you need to own stocks today. Don't let the election scare you out of the market.
The truth is that the outcome of the election shouldn't have too much of an effect on your portfolio. Sure, there may be some short-term swings based on the outcome. But there's always going to be market volatility. That's the nature of the game.
Looking at the bigger picture, who the president is won't matter that much.
Doc has shared this stat before, and I love it... Since 1926, Republicans have held the House, Senate, and presidency for 13 years. In those years, the market returned an average of 14.52% per year. There have also been 34 years of unified Democratic government. In those years, the market returned an average of... 14.52%.
The point here is that you shouldn't stash your money under your bed for the next few months. The election is scary. I understand that. But don't let those emotions get the best of you when it comes to your investing.
In the short term, over the next 12 months or so, I like the outlook for the market. I'm pretty bullish.
We'll soon see a new wave of stimulus hit the economy, and there are signs of economic recovery. My two sold-out flights were a positive sign. And, take a look at the recovery in consumer spending...
My colleague Steve Sjuggerud is also bullish. He's pounding the table to buy stocks now. He thinks it may be your last chance at massive gains because of his "Melt Up" theory.
If you're sitting around with a good chunk of cash, it's time to put some of it to work today.
Steve recently hosted an online event where he talks about what will happen over the next few months and how to profit. Specifically, he has identified nine investments that could produce massive returns over the next 12 months...
The offer to get access to these stocks closes tonight, so click here to learn more.
What We're Reading...
- Evacuations as two wildfires rage in California.
- NYPD and LAPD are worried about Election Day protests.
- Something Different: States will need billions to distribute the COVID-19 vaccine as federal funding falls short.
Here's to our health, wealth, and a great retirement,
Jeff Havenstein and Dr. David Eifrig
October 28, 2020