We’re in a period when most folks will get very distracted…
We’re in a presidential election year. We’ve already kicked off the primaries. And Super Tuesday is nearly upon us.
This is a critical moneymaking moment for the mainstream media and their advertisers. Keep in mind that 2023 was a terrible year for cable news. Some networks lost up to a quarter of their average audience in just 12 months.
That means the networks will do everything they can to keep your eyes on their election coverage.
But be warned… This is a “national distraction.” And if you’re not careful, it will come directly at the expense of your wallet in 2024.
That’s because if you’re focused on the election… worthless polling data… and who appears to be in the lead on any given day…
You’ll be completely blindsided by a critical election-year event headed straight for U.S. stocks in just the next few weeks.
When you think of election years, you likely think of volatility, uncertainty, and fear. We’re certainly still seeing that today.
Recession alarm bells are still ringing in the financial media. Interest rates are still high.
There are ongoing wars in the Middle East and in Europe. Banks are still on shaky ground.
As regular Chaikin PowerFeed readers know, I’ve been bullish on stocks for 2024. But many investors are asking a big question…
Will the election bring the bull run to its knees?
If you’re focused on the long term when it comes to your investment decisions, maybe you haven’t given that much thought to presidential elections.
But I’m hoping to change that right now.
Folks, the average gain in all pre-election years – over nearly 100 years – is 17%. That’s almost double the annual average.
And as I said last month…
The stock market has only lost 5% or more in six out of 32 presidential-election years since 1896. And in five of those elections, the party in power lost.
Since 1950, the S&P 500 has rallied in 14 of 18 presidential-election years.
And while this might be unfamiliar to most regular investors, nobody I worked with on Wall Street disregarded the effect of presidential elections on the U.S. stock market.
It’s how billionaire hedge-fund manager George Soros looked at the market when I worked with him.
He passed this perspective down to the famed Stanley Druckenmiller, who worked with Soros before starting his own hedge fund.
Even the legendary Warren Buffett – the king of ignoring market tailwinds and headwinds in favor of the fundamentals – considers election trends when making his investments.
But you don’t have to be a 50-year insider like me to pick up on just how much the political landscape influences the Street – especially during election years.
You just have to follow the money.
In 2016, activist investor Carl Icahn famously made a $1 billion bet that stocks would rise if Donald Trump won the presidential election.
Following Trump’s surprise victory, S&P 500 Index futures initially plummeted… before nearly erasing the decline by the time the markets opened. The S&P 500 went on to rise as much as 1.4% the day after the election.
But folks, this is the important part… what’s coming isn’t about party politics. It’s not about who wins and who loses.
You can’t just focus on the horse race. Sure, some find it entertaining. But it’s a national distraction.
The simple reality is that there’s a real opportunity forming in the market right now. Some investors will see it, understand it, and act on it.
Others will fall to the national distraction.
But I don’t want you to be among those who get blindsided.
That’s why next Thursday, at 8 p.m. Eastern time, I’m going on camera to share the full story of what’s coming – and exactly what do with your money to prepare for it.
Keep in mind that if you wait until the election in November – or even just until the conclusion of the primaries – to position yourself, you’ll be too late.
So mark your calendars for my free event next Thursday, February 29. And register to attend by clicking here.
Good investing,
Marc Chaikin
