35 Days of Uncertainty Of the more than 100 million ballots cast, the 2000 presidential election was decided by 537 votes in Florida. If you’re above a certain age, you’ll remember what happened. Back then, many voters used punch-card ballots. And in some cases, the punched-out pieces of paper, called chads, didn’t fully detach, leaving “hanging chads.” These incomplete punches made it unclear whether the voter had chosen a candidate or not, which led to disputes over how to count those ballots. Long story short, the results were contested. Recounts were ordered, debated, challenged, halted, restarted, and challenged again. The election was settled only 35 days later when the Supreme Court declared George W. Bush the winner. This wasn’t only unsetting for millions of Americans. It also seriously upset investors. In the week of the election, the S&P 500 was down 4.3%. The average weekly drawdown for the S&P 500 is about 0.5%. So, we’re talking about a move 10 times steeper than the typical weekly loss. Then, in the week of the Supreme Court’s decision, the S&P 500 dropped another 4.9%. You can see the election 2000 chaos in the chart below. And that election wasn’t nearly as heated as the contest between Trump and Harris. So, I expect the market chaos in November 2024 will make the chaos of November 2000 look mild by comparison. And while you may think it’s a matter of preparing for a repeat of the contested election results of 2000… or even 2020… … I predict it’s going to be unlike anything we’ve seen before. That’s because of a second event that impacts markets – right as investors are trying to cope with a contested election. This Will Send Volatility Even Higher During the same week as Election Day, the Federal Open Market Committee will meet in Washington to decide on interest rates. Most folks didn’t pay much attention. But months ago, the Fed made an unusual shift in its meeting schedule. It pushed the start of next month’s two-day interest rate policy meeting from November 5 to November 6. Why? Maybe they didn’t want to seem political… Or maybe they wanted the option to be able to react after the election results start rolling in… I’ll let you make up your mind up about that. But either way, come November 7, at 2 p.m. Eastern Time, the Fed will announce to the world whether it’s going to continue to cut key interest rates… and by how much. Right now, markets are expecting a quarter-point cut. But it could be another half-point cut like the one it announced in September. Or it could not touch rates at all. Either way, that’s three more market-moving variables that will be uncertain come the day after the election. In normal times, Fed decisions are big market drivers… But on the day after the most contentious presidential election in modern history… with the entire country on edge? Think how much more volatility it will add to the stock market. But as I mentioned up top, this is NOT a reason to panic. Quite the opposite, in fact. Systems Are Critical During Chaos I’m what’s known on Wall Street as a “quant.” I don’t follow hunches about what stocks to buy… or what the market will do next. Instead, I build computer models that identify stocks with high growth rates and momentum. And I’ve done pretty well by taking my emotions out of the investing process and trusting in my models instead… I’ve been using my proprietary quant system to help identify growth stocks and market trends for well over 40 years. It’s why I was able to beat the S&P 500 by 3-to-1 for 23 years straight. During that time, I spotted early investments in companies that dominated their industries – like Microsoft Corp. (MSFT) at $0.38, Apple Inc. (AAPL) at $0.37, and Nvidia Corp. (NVDA) at less than a quarter – all before they experienced explosive growth. Of course, that’s “ancient history.” I have many more recent successes. Just in the past year, I’ve closed out trades in: - Rambus (RMBS) for 133% gains in 17 months.
- Super Micro Computer (SMCI) for a 593% gain in a one third sale.
- Gatos Silver (GATO) for 45.6% gains in one month.
- And e.l.f. Beauty (ELF) for 68.5% gains in 16 months.
And while investors panic following the election as stock market volatility kicks up, I’ll be using these models to spot profit opportunities amid the chaos. From four decades of professional experience, I can tell you that systems are critical – especially in volatile markets like I see coming. And right now, I’m particularly excited about one model in particular… It took hundreds of thousands of dollars to develop. And up to recently, it’s been directly accessible only to large institutional investors and money managers for high-net-worth clients. But I’m bringing it to everyday investors like you before Election Day… to target the biggest profit opportunities that most investors can’t see ahead of time. I won’t go into too many details here. I’ll be revealing all during my “Day After Summit” on Tuesday, October 30, at 7 p.m. Eastern Time. I’ll be showing folks how to navigate the volatility I see coming and turn it into profits by using this same system. I’ll even give away a post-election trade for free. It's designed to pay off no matter who wins the election. So, make sure to sign up for that at this link. And if you don’t have time to join me next week, don’t worry. As long as you don’t panic sell out of your long-term holdings as the market whipsaws, you’ll do just fine. Eventually… Sincerely, |
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