For about two months now I’ve been collecting some data and talking with investors on what will happen with the stock market under the next new President. Any talk of economic collapse has no merit so this post should be only read by the serious-minded.
It’s always hard to gauge the stock market in the fall because a lot of selling is happening with investors getting ready for tax season. Any media reports on sell offs before or after the election is because “X candidate is about to get elected” is drivel.
Right now a lot of investors are in a “wait and see” mode. Money is sitting on the sidelines according to one money manager I had drinks with few weeks back. The firm he works for opened up new bond accounts since the clients didn’t want their money in the stock market due to the election.
I mostly do my stock market investing from following Federal Reserve numbers posted every Friday in a paid newsletter from EconomicPolicyJournal.com. Robert Wenzel runs the site and has a simplistic/unique view on the stock market based on classic economic principles. His data, without giving away his product, Federal Reserve is printing money and the stock market will go up no matter the candidate who gets elected.
I stand by the following principles on my investment philosophy and future look:
- Federal Reserve is printing money and devaluing the dollar. Commodities benefit from this due to the coming inflation and a weak dollar makes the stockmarket higher. The federal government is broke and Federal Reserve is still buying up their excess debt in which the private sector doesn’t buy. My two areas I like is oil and taking in physical silver.
- Inflation is coming. Hyper inflation? No, but inflation is coming. Don’t believe me? Go to the grocery store as one source of where prices are going up.
- I will probably buy into the stock market on a major dip after the election and my talks with investors is should be rocking after the New Year or early spring.
- Bonds are junk
- I usually don’t buy just one stock. People always ask me about certain companies and I steer them towards areas that produce something or benefits someone: Exxon Mobil, WalMart, Amazon, Natural Gas pipe companies, etc. I’m not a Twitter or Facebook stock investor because they don’t produce anything.
Don’t listen to mainstream media on the stock market if a sudden one or two day sell off happens……investing is always an evolving 5 to 10 year process.
Best of luck.