Our country stands a day before a momentous decision as to its leadership and ultimate political direction. As we have written before, this presidential election has consequences. Our direct interest is for the investment implications. After all, we have to invest in all manner of environments (and have). The emphasis of where, what sectors etc. will shift depending upon the ultimate outcome.
In the mean time, investors have been raising cash in the face of this uncertainty. We predicted this and made our moves well in advance of the current sell-off. We spotted money flows turning negative weeks ago. We are now scouring for opportunity, although it might be early yet. Not only do we have to see the results of the presidential ballot, we want to know how the down ticket races shake out as well as a sense of the aftermath. Does our democracy still work and transfer of power is smooth, or are we looking at something else?
What we can say is that the economy, throughout this period has been performing admirably. Jobs are still being created, pay packets seem to be growing, and overall growth did not stall, but accelerated. This is why we felt any sell-off should be well contained, but that still depends on Tuesday’s outcome and aftermath.
God bless America. Stay steady my friends, we will get through this and hopefully find new profitable opportunities.
The Lonely Bull