Today is the day Americans go to the polls to decide the direction this great nation will be going over the next four years.
So far, nobody I’ve talked to can remember an election quite like this, where so many people on both sides seem to be screaming that a win for the opposition would result in the collapse of the country.
To that point, I want to discuss something that will directly impact YOU in all this:
With the stock market (and your retirement) in focus, is this really the End of America…?
Let’s set the scene with how the market views both candidates:
- A win for Hillary Clinton is a win for the status quo. Since she’s a known commodity, the market would receive a Clinton win favorably.
- A win for Donald Trump is a win for the unknown. Since investors don’t know what they’ll get out of Trump, the market would receive a Trump win with negative action.
So I think there are two big questions we need to ask to determine if this will be “The End”, as many are saying…
Question #1: Can Trump win?
Absolutely. Although yesterday’s big market jump shows that investors now
The only evidence you need is what took place across the pond, where the United Kingdom voted to leave the European Union.
Many people viewed that Brexit vote as a precursor to what would happen here at home, and for good reason. In essence, Brexit and the current U.S. presidential election are both about “regular people” (average citizens) taking back what’s theirs from The Establishment.
And nobody thought Brexit had a chance either…
But Trump and Brexit both have something powerful on their side…angry supporters. In a world where it’s much easier to post your opinion on social media than to actually go vote, angry people vote.
So can Trump win? Definitely.
Question #2: Would a Trump victory deliver a fatal blow to the market?
It’s 100% possible, if not likely…
And here’s why:
- The stock market is already teetering on the edge, as it’s clearly been running on fumes for months now – the S&P 500 is at the exact same level as it was in June.
- Additionally, we’re long overdue for a bear market after seven long years of a raging bull market. And if you look at an index like the NYA, which is the composite index that takes all indexes into account, you could argue that we’ve been in nothing more than a bear market rally for these past few months.
- Last week we breeched some very important levels for the S&P 500. Those levels signified strong support for the overall market, but we broke right through in the second half of the week.
- With a Trump victory likely to be greeted with heavy downward action, what appears to be the last line of defense against a big drop – the 200-day moving average – could be broken.
At that point, there’s really no stopping the momentum of a fall, especially with the Federal Reserve needing to raise interest rates.
You’ll certainly be hearing the loudest voices shouting about the “End of America” at that point! But that will all be a part of a natural market cycle that’s only been delayed by The Fed because of this election.
The crash to come won’t be the end. It will be necessary.
However, you DO NOT have to sit idly by and watch your money crash with the market. Instead, why not profit more than you ever have in your life while the market corrects itself…?
For those of you on Midas Wave Alerts, you already know the long-term play we have for doing just that. We’ll be winning while everyone else is losing!
But it’s not too late to get on board and profit with that same play…
So is this really the “End of America”? No, but it may feel like the sky is falling at times should Trump come out victorious. And for those of us betting on the fall, it will feel like money is falling from the sky as well!
Thanks for the tip, I am hopefully waiting for the end. Either way I must survive . Ready to go