Well, it is Monday morning and if all goes well we will know who will be in the White House sometime early Wednesday morning. Along with the let’s just get this over and the unknown unknowns of whoever wins the problems that are in front of us will not be solved with the election results, tension from My Crowd is building rapidly. As a financial advisor your job is to protect your client’s assets first and make a return based on your client’s needs. However, the unemotional discipline and maintain your objectives and principles of investing is being tested to a very high degree.
What is important is that what we fear does not usually happen like what our emotions have us think it will result in. From my world the best barometer that votes every trading day is the U. S. stock market, and from what I see from the three indictors that I rely on Psychology, Monetary and Valuation, These are all positive and from my technical charts a buy signal was sent on U.S Equities. Therefore, the market is not predicting who will win but it is telling us that just getting the results and finding what the rules of the game are will take away the unknown unknown’s and produce the known which will remove the uncertainty that has produced the heavy fog draping over the market even has I write this piece.
I will attempt to send out a morning update throughout this week as all of this theater plays out. As I glance at my monitor the markets are basically flat with low volume. So we enter the waiting game but I am working on what changes if any need to be done to our portfolios. Since I have stayed fairly defensive coming into this I don’t see any abrupt changes this week, but like the “best laid plans of mice and men this too is subject to change”.