Chaos and uncertainty overshadow this year’s election more than other years. There is a run-off election in Georgia for control of the senate and a disputed presidential election. Are you concerned about the security of your finances?
A recent study found 93% of investors believe presidents influence performance in the stock market. Another 84% expect the results of the election to impact their investing habits.
Life is Ruined! The Country is Doomed!
You may have fallen into the common political way of thinking. It’s an all-or-nothing, catastrophic mentality. You might believe, in this bipartisan country, if the other side wins, all is lost. Your life is ruined and the country is doomed.
Comfort may be found in an article on Kiplinger. It notes, “Historically speaking, elections have made little impact on long-term investment returns. Capital Group economist Darrell Spence says, ‘There are many other variables that determine economic growth and market returns and, frankly, presidents have very little influence over them.’”
Robert R. Johnson, a Professor of Finance at the University of Omaha, was quoted in an article on Forbes as saying, “The bottom line is that the president gets too much credit when the economy is booming and too much blame when the economy is lagging.”
Investing Requires A Long-Term Strategy
Regardless of election outcome, you need to keep things in perspective. As chaotic as it seems right now, elections are short-term events. Personal retirement planning and investing require a long-term strategy.
Johnson continues, “Yes, who wins the presidential election matters. It matters differently to different people. But it doesn’t matter to the market overall.”
“If you have a long-term perspective, don’t worry about the influence of politics on the markets. And, if you don’t have a long-term perspective, you might want to try and get one.”
Investing and Algorithms
For decades, investors have had access to trading using algorithms. However, for many years, only professional traders and affluent individuals were able to use the algorithms. This gave them a definite advantage over average investors.
Kelly Korshak had a successful trading career on Wall Street using A.I. technology. But he left that career and created iFlip to close the investment gap. This gave the average investor the opportunity to apply A.I. technology to personal and retirement investments.
With his 30-plus years of expertise in the markets, Korshak recently reported, “The market is going up and likely will continue to do so because regardless of the winner of the presidential election, the market knows two things:
- The Fed will keep Interest rates low for at least another two years as the economy recovers so unemployment continues to decline.
- Expect more stimulus coming from the government, which will cause a forceful tailwind. This will lead to excess, but not in the short run. Hold your positions.”
Korshak also mentioned that as a vaccine is introduced, travel and leisure will recover. Along with energy stocks, those equities are low now. Expect to see them regain their worth over the next couple of years.
This isn’t dependent on who is elected. But it will require you to own the stock now and just wait for their value to return.
See Also: Election Investing Landscape: Do Nothing
Buy low and sell high. That’s what every investor wants to do. iFlip is the smartest way to invest in your future. Using the best algorithmic trading software, iFlip’s A.I. SmartFolios are long-term investments.
With 10 SmartFolios to choose from, you’ll find one that fits your risk and investment style. Two of them even offer some stocks mentioned earlier by Korshak. Those undervalued now, but expected to regain their value in a couple of years.
iFlip’s A.I. SmartFolios are self-driving. They use machine learning to buy, sell and hold positions based on market risk. You won’t find that when robo trading with companies like Robinhood, E*TRADE or Betterment.
Ignore the chaos spread by the elections. Instead, use it to your advantage in your personal retirement planning. Hop over to iFlip and learn how algorithmic trading software is available for your desktop or as the best mobile stock app. Sign up for an account today.