Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)
Twitter
Tags: Election
Stocks: DB, HYG, JNK

How to Profit No Matter Who Wins Today

By Michael E. Lewitt, Global Credit Strategist, Money Morning • @MichaelELewitt • November 8, 2016

View Comments

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

Michael E. LewittMichael E. Lewitt

This tawdry circus of an election has carved deep scars on the American soul that will persist long after Jan. 20, 2017.

But at least the contest itself is almost over.

The FBI may have closed its investigation into Hillary Clinton's use of a private email server, and Donald Trump may yet prevail when he answers the troubling lawsuits he faces, but the reputation of virtually every individual and institution touched by this election is ruined - the media, Justice Department, FBI, the candidates, their surrogates and supporters, both political parties, and those holding high office.

As of this morning, the so-called elite political class has disgraced itself on a daily basis for more than a year.

They'll be no help at all. We will be left to pick up the pieces after today.

The markets are finally realizing this, too; they're starting to react to the turbulence ahead, but they are dangerously, shockingly complacent.

Sign up for SMS so you never miss special events, exclusive offers, and weekly bonus trades.
So here's what I see happening with your money, whatever the outcome of this farce of democracy will be...

The Market's Don't Expect Trump... but They Can't Handle Hillary

U.S. stock markets demonstrated an amazing ability to ignore the unfolding political train wreck throughout the month of October.

profitThey began the month of November looking a bit green around the gills, though it is difficult to determine whether it was politics or nervous credit markets that were the cause.

The high-yield bond market has been selling off for about a week, with both large high-yield bond ETFs - the SPDR Barclays Capital High Yield Bond ETF (NYSE Arca: JNK) and the iShares iBoxx HY Corp Bond ETF (NYSE Arca: HYG) - dropping for six consecutive days before creeping up yesterday as polls swung back toward Hillary Clinton's favor.

Both ETFs only lost a couple of percentage points, but this particular trend is not investors' friend. and high-yield jitters often portend equity market weakness.

The real question is what happens if Donald Trump wins the presidency...

No matter what kind of handwringing happens at CNBC, equities could sell-off sharply as investors wrestle with an outcome that was not priced in to the market. In that case, we can expect many of our favorite short positions, like Deutsche Bank AG (NYSE: DB), to head straight down. You can get some of those recommendations here, here, and here.

On the other hand, if Hillary Clinton squeaks by, the relief rally that many expected may not materialize, since her victory sends the country straight into political paralysis and constitutional crisis that leaves us vulnerable to geopolitical and economic threats. Since market valuations are already extended, the sell-off could be serious until cooler heads prevail.

If Hillary Clinton wins - and she still maintains an Electoral College advantage - she looks forward to a presidency paralyzed by partisanship and ugly accusations. Unlike Barack Obama, she won't enjoy a honeymoon in which Democrats control Congress and will have to work with Congress - if anyone in Congress will risk their careers and reputations to work with her.

This Outcome Looks Likely, No Matter the Winner

Join the conversation. Click here to jump to comments…

Michael E. LewittMichael E. Lewitt

About the Author

Browse Michael's articles | View Michael's research services

Prominent money manager. Has built  top-ranked credit and hedge funds, managed billions for institutional and high-net-worth clients. 29-year career.

… Read full bio

Login
guest
guest
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
LWS
LWS
6 years ago

Are you kidding me? The Dems have been mud slinging for decades and now you want to whine? You are who I've lost all respect. The truth will win in the end.

0
Reply


Latest News

May 28, 2023 • By Garrett Baldwin

postcards from the florida republic - may 28

May 27, 2023 • By Garrett Baldwin

postcards from the florida republic - may 27

May 26, 2023 • By Garrett Baldwin

Here's Your (Surprising) Best Bet in a U.S. Default
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts Resource Traders Alliance

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz