November 8, 2022
Tuesday morning
November 8, 2022
Hello everyone,
MID-TERMS TODAY…
Everybody has an opinion about who will win and why.
Everybody has an opinion on why Biden is no good (or great) for the county...
Everybody has an opinion on why Trump is no good (or great) for the country…
Social media is on fire with all sorts of rants about each candidate.
I just want to see facts…
Many Americans have become disillusioned with the whole social media environment as it fans the flames of fake news and misrepresentation.
Even the news itself is, in most cases, biased.
On Tuesday evening results will start to roll in.
Wednesday – mid-term results will be clearer and show the impact on the market.
Historically, markets have risen after mid-term elections, even in a recession, so there is no reason not to believe 2022 will be any different. There is also the fact that the election is now in the rear-view mirror and markets can breathe a sigh of relief.
Gridlock is a possibility in the political landscape. It is worth noting, however, that Ben Snider, a senior strategist from Goldman Sachs argues that “equity returns have generally been slightly stronger under divided governments than when one party has unified political control.” Big policy shifts are also difficult to pass under a divided government and we all know that the market likes certainty, so, again, we can think of the division as beneficial for the market.
Republicans have been favored to win control of the House, but the Senate looks like a toss-up that could come down to even a single race.
So, we will wait and see what happens…
Did anyone take a ticket in the $1.9billion Powerball jackpot?
What would you do with it if you won?
Here are some expert views.
Mark Cuban says if you take it as a lump sum, you could put some of it in a low-cost S&P 500 index fund and let it grow long-term. Cuban says index funds are relatively safe investments over time even for those who don’t know much about investing.
Another idea from Keven O’Leary is to put the cash into “low volatility, dividend-paying stocks. With a lump sum payout, you could take advantage of compound interest.
These are not bad ideas with any amount of money.
All the very best
Cheers
Jacque
"Your worth consists in what you are and not in what you have." - Thomas Edison