So my LT account gains have almost doubled in 2 days.
I’m not naive enough to know this isn’t normal, but I also haven’t been investing long enough to know how these election periods tend to go.
Is there anyone here who can offer up some experience from previous elections and what we’ll likely see in the coming days?
I’m thinking I should be locking in profits, but at the same time it’s my LT account and I’m not trying to time the market. I’m just wondering if this is one of those times when you do things a bit differently, take advantage of a massive rally and take some gains before an inevitable reversal.
Historically the upward trends stays after the election for a few weeks. This is my first rodeo however so take that as second hand information.
I really do not have an answer but excellent post, I’m sure many of us are having the same thought.
I’m also very interested in this.
The drop last week was a bit of a wake up call for me also to spread my eggs a little more.
Put it out to a couple of LT investors I follow who are stateside - response was as follows;
Right now it’s Nov 2016 all over again. That’s a fairly good playbook. We watch sentiment for extremes and look for distribution in the leading stocks and major averages. None of that at the moment. Bigger picture this is week 1 in a typical 16 to 20 week cycle.
Like some of you know I am holding 100+ stocks in my portfolio. I think today was my single most positive day over whole portfolio(5.9% over all portfolio), since some “fun days” in 2008 recovery.
Historically speaking up/down trends on election day, stay there and softly revert to normal if reverting at all but I think this election was a bit special.
this is not my political view but:
I think the election result is as good as it can get for wall street. Biden is likely to get the presidency, so “tarif war” stupidity can end, and alienisation of US can come to a familiar neutrality. Meanwhile republicans held the congress which means the stronger regulations on big corps, Disassembling “big tech” monopolies, or introducing further taxation is unlikely to pass.
Best of both worlds.
I am gonno ignore the “popular” stocks. Apple doing a 10% increase could be news but nothing abnormal. But look at the big pharma yesterday ABBV was up 10%+ pfizer 6%+ these stocks rarely move (unless there is like a break through cancer drug or something) For me this implies the status quo is moving into a more positive place (god knows how much more positive we can get but…)