10-09-2020, 05:45 PM
(10-09-2020, 05:03 PM)john Wrote: Is it wise to be a little cashy going into an election or do most of you stay fully invested?All you will get here are opinions of course. I never ever let fear "cash me out" but there are times I like to be a little cashier than usual and this is one of those times. Too many strikes against us right now. The market valuation certainly does not match economic reality. A stimulus at some point will come, but is one more enough? I actually doubt that it is an we can't print unlimited money. I think the market has accepted the reality that Biden is the favorite right now. If he wins it certainly wouldn't be a shock to the market. The drama that follows an election almost sure to be contested won't be good in the near term.
If I recall correctly in 2016 there was a "flash crash" then the market quickly recovered, does the market typically dip a little following an election or was that because the outcome was unexpected?
I would not want to guess as to who will win which is why I am wondering about the possible volatility following.
What was market volatility like 2000 Bush v Gore as a lot of the news media is predicting a similar situation..
So I predict volatility but no crash in 2020. Let the election calm down and some reality to set in early 2021, then I will be concerned the market finally corrects. I just make lemonade when I can. Stocks run up stupid I sell a few shares here and there. (which I did this week) Add a few on a bad down week. And I knew firearms stocks would do well so I flipped enough of them this month to buy my wife a pistol. She expects the election zombie apocalypse lol. That's fine, we like to target shoot anyhow so I made the market buy her an election pistol lol.