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Election and Investments


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#1 RockmartGA

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Posted 16 October 2020 - 10:28 AM

What are y'all doing with your investments prior to the presidential election?  I'm seriously thinking about moving my 401k assets into some type of low-risk cash account.



#2 r82230

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Posted 16 October 2020 - 04:34 PM

Couple of points of interest, both of these articles discuss/show the negative effects of being 'out of the market'.  Missing the 10 best days over a decade (or two decades).  Basically, the best days, seem to come after some of the worst days.

https://www.fool.com...-in-the-st.aspx

 

https://seekingalpha...ry-10-best-days
 

Now, with that said, you should also pay attention of what does happen on election day.   Biden already said he is going to raise taxes on corporations, hence that might not be good for US stocks.  Whereas Trump says he is going to continue or up tariffs, hence that might not be good for International Stocks.

 

The Federal Reserve is purchasing around $120 billion worth of US Treasuries a month.  As of 9-30-2020 they held $4.4 trillion of US Debt (about 21% of total).  Plus $2 trillion of Fannie Mae, Freddie Mac or Ginnie Mae debt.  Total on the Fed Reserve balance sheet as of October 14th, only $7.045 trillion.  This info is from the Federal Reserve.  

 

It's easy to print money and it puts pressure on the interest rates/returns in the bond market.  :mellow:

 

So to your question, I'm personally staying the course, until the votes are counted.  HTH

 

Larry


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#3 Gearclash

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Posted 17 October 2020 - 08:49 AM

Not changing anything.  It seems like heads they win, tails you lose.  My advice, don’t play another man’s game.


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#4 somedevildawg

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Posted 18 October 2020 - 07:33 AM

Nothing here.....buying some property just ahead of election, but it has nothing to do with the election and more to do with current rates.

#5 broadriverhay

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Posted 18 October 2020 - 08:43 AM

My stock man says “ Stay the course” also. He says if Biden wins , the Democrats like to spend money so the market would respond positively until we have to start paying for their spending a year or so down the road.

#6 gradyjohn

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Posted 19 October 2020 - 11:58 PM

Just remember ... the government only spends what it takes from us. Choose wisely!



#7 Gearclash

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Posted 20 October 2020 - 07:39 AM

Just remember ... the government only spends what it takes from us. Choose wisely!

Actually the government almost always spends more than it takes from us.  Deficit spending, which is one source of money creation.  Bank lending is the other source, but the principle that  banks create in lending gets erased as the loan is repaid where federal deficit spending stays in existence indefinitely.



#8 JD3430

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Posted 20 October 2020 - 07:43 AM

All depends on what your investments are actually in. 
If your invested in things like genome sequencing, cashless payment devices and where the future money is going, you stand to make money, no matter who wins. 
If your investments are biased towards who wins the election or rearward looking investments, you could be in trouble



#9 RockmartGA

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Posted 20 October 2020 - 10:57 AM

Okay.  I've climbed back in off the ledge.    :)    Thanks for everyone's input.

 

Maybe since I retired from my day job, I've had too much time to overanalyze everything?  I also realize the risks about trying to "time the market".   Still, the national democratic party seems to have gone "off the rail" the past couple of years and trillion dollar "covid stimulus" packages don't do anything to calm my nerves.   One of these days, the National Debt issue is going to come home to roost.

 

Oh well, there's always Tequila.... ;)


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#10 r82230

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Posted 20 October 2020 - 12:33 PM

Suggest that you do what I do.  Say 'thanks' when you see your grandkids.  Seems it will be their problem on paying back the debt.  As long as we currently keep printing money.  My younger ones don't quite understand the amount of debt they have at just over a year old.

 

According to this article (below) and figuring a US population of 330 million, we are just a hair more than $9K of debt per person, with a month to go with the Federal budget.  No wonder some folks want to allow illegals in, spread the debt.  :rolleyes: 
 
https://www.investin...illion-2293188 
 
Larry






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