Nope. While that may be conventional thinking, that’s not the way to think about it.
Politics plays no part in our picks. Why? It’s not measurable and the ones who’ve tried to pick based off of politics have failed miserably, like mentioned in my latest weekly video.
Every time period (no matter who’s president) will push some stocks into value territory, which scanning stocks through our system…I’ll see.
Rememver: Things get priced into stocks AHEAD of time. So, the thought process of electric is everything and oil/gas is going away ,etc. has already been priced into oil stocks. That’s why they’re not trending higher (and some are in wave 3’s, one of the strongest parts of the uptrend).
We don’t try to stay in stocks until the end…because no one knows where that’s at. However, anyone can assess when risks are high and dodge those risks. Meanwhile, the uptrending market has been beneficial to our stocks too and we’ve close a lot of very nice gains as a result. But with 401ks, you have few choices typically. And right now, with most everything overvalued broadly, you’d be putting your retirment funds in grave danger, whether the risks have been realized yet (and they haven’t) or not.
No one can stay in “until the end’ or “near the end”, because that would assume they knew where the end was. No one is that good…including Buffett and certainly including me. However, thankfully, that doesn’t have to be known to make massive gains over time, like you’ve seen we’ve made.
Politics will never be a factor in our system or influence the way we invest. When the LI system says to buy something, we buy.
By the way, oil stocks were still down under Trump and they’re just trending higher in the final bit of his administration.
Politics does affect the real economy but the economy doesn’t equal the stock market, even though at times, the two do happen to reflect each other. The economy wasn’t in good shape under Obama and yet stocks soared under his ridiculous policies. Stocks continued to soar under Trump, yet with lockdowns/shutdowns, which caused a weak economy. It didn’t matter as much (as far as stocks were concerned), as to who was president as much as it did what the Fed was doing with interest rates that entire time. However, the Fed can’t take stocks to the moon and they can’t prevent massive corrections/crashes. Stock market history has proven that, time and time again.
So what will we do under Biden, Yellen and anyone else? We’ll continue to use our system which doesn’t change. We’ll continue to find value and crank out winners overall. Some times will be slower growers. Some will be faster growers. Most will win. Some will lose. Overall, the portfolio will be advanced over time. It’s just that simple. Other factors simply don’t make the cut. Why? Because as it concerns stocks, they’re just distractions.
Now…as it concerns the real economy, I don’t believe Biden will be good for it. And I think if Trump had been left alone, he would have been able to continue to improve the real economy with his pro-business, pro-employment policies. So, I voted for Trump twice because of what I believed he’d do for the economy, jobs, morality, etc. but not because of what he’d do for the stock market. The market is in a mania/bubble. That could have happened under any president/administration. Bill Clinton (a Democrat) was president in one of the last bubbles in 2000. George W was president in the crash of 2008, a Republican. And Biden will likely be the president under the next crash. Bubbles/manias don’t care who’s in the oval office.