Don’t be fooled by the talking heads on television, the only loser after the presidential shouting match last Tuesday evening were the people of the United States of America. The entire debate can be summed up in 2 words. Embarrassing and cringeworthy!
What is the market telling us?
We saw markets have a knee jerk reaction Wednesday morning but end the day positive. Although the day ended positive, the quarter also ended on Wednesday, and it was down, plus the month of September was down overall. Go back and read my piece on how markets can predict the presidential election.
With national polls pointing towards a Biden advantage after the debate, seeing markets end positive is a huge plus. For those who feel a Biden win will cause the market to fall, this should give you some comfort. The same can be said about the market performance on Friday after learning about President Trump’s Covid-19 diagnosis. Markets were choppy, but no drastic fall.
Politics aside, the markets have indicated that they are fine with a Biden presidency, and although you may disagree with that, the question I have to answer is, will your portfolio agree with it?
Covid-19 and President Trump
From an optics standpoint, the diagnosis of President Trump with Covid-19 as well as so many other people in his circle looks very bad. The irony of mocking Joe Biden for wearing a mask so often, and then contracting the virus 48 hours later hasn’t been lost on the American people, and I suspect on Joe Biden’s marketing team.
- The market reaction has been to shrug it off it seems, but that can always change very quickly.
- Deciphering real news is nearly impossible today
- “News” stations all have their own biases.
- Don’t get caught up listening to talking heads
- Their job is to make you emotional, not give the news or provide guidance and advice
- Find real, independent, research and sources for news.
So how does this impact all of you?
- A lot is going to happen over the next 30 days, CNN and FOX are not trying to tell you what it actually is. Stop listening to them
- Independent and trustworthy news sources that are doing independent research will be the ONLY place to get real information
- Don’t let politics cloud your vision for the markets. One person winning or losing isn’t going to derail anything.
- Stay safe and healthy
What to look forward to this week
Wednesday October 7th, 2020
FOMC Meeting Minutes @ 2PM
Thursday October 8th, 2020
Initial and continuing jobless claims @ 8:30AM
Most anticipated earnings for this week
Latest Covid-19 Data
Don’t forget to check out last weeks episode of Forefront’s Friday Fun, and remember “its personal, not just business.”