How each election result impacts your money

Sean BowerIt’s finally here – one of the most important presidential elections in recent history is occurring as we near one of the most influential times for the United States and the world.

But before digging into what each result would mean for the global puzzle of economics, diplomacy, and everything in between, it’s now time to look at how a win for either candidate would affect your money right now.

With just hours left before Election Day, it’s time to see what’s going to happen to your cash in the hours after this race is decided…

Please note that this is NOT a referendum on which candidate is better for the U.S., nor is it an endorsement for either.

The Midas Legacy isn’t here to pick sides. We’re here to show you what any and all outcomes would mean for you in your chase for financial freedom. So let’s take a look, shall we?

First of all, it’s worth making the point that the stock market and presidential elections are very closely intertwined.

In the months leading up to Election Day, the performance of the market plays a big role in whether or not the party in control of the White House remains in control…

When stocks are up in August, September, and October, the November Election Day shows a victory for whichever party already holds the presidency over 80% of the time! But a poor market performance over that same time results in a win for the opposition party (in this case, the Republican party) over 80% of the time!

But the relationship goes deeper than that…

The outcome of the election will often have its own significant impact on the stock market in the days directly after the election. Here’s how a win for each candidate would likely impact the market and, whether it’s through direct investments or pension funds, your money:

A Win for Hillary Clinton

If Hillary comes out on top, the stock market will look at the result with one thought: status quo.

Clinton is a known commodity that Wall Street can make sense of. As part of the political picture for years and years, investors would likely greet the election of Clinton with open arms.

If this result comes to fruition, expect a boost for stocks as investors breathe a sigh of relief…

A Win for Donald Trump

Unless utter chaos ensues Tuesday, the only other real option for president is Trump. And unlike Clinton, Trump is an unknown for Wall Street…and stocks do NOT like unknowns…

Although the market has appeared to be pricing in the possibility of a Trump win over recent weeks, the realization of a Trump victory would very likely mean a dip for stocks in the days after the election.

Here’s how I’m playing the odds:

The market is sitting in a very dangerous spot right now, close to the technical breaking point. A dip from a Trump win would most likely push the market below that breaking point to a place that it can’t recover from before enduring a long-overdue bear market.

That possibility would have a massive effect on everyone’s money.

On the flipside, a Clinton victory would likely result in temporary respite for a reeling market, but I don’t see how much life it can breathe into stocks that have been running out of steam for months, especially with rate hikes looming.

So one outcome gives us a chance for slight upward action, while the other gives us a chance for overwhelming downward action.

The risk/reward of this situation is simple – position yourself to profit BIG from the fall by betting against the market, and deal with the relatively insignificant action against you if the result goes the other way.

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