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Midterm elections are only six weeks away, and predictably, many investors are turning themselves inside out because they think the stock market's next move hinges on the results of those elections.
The mainstream media certainly wants you to believe that's the case. So do legions of pundits hawking their unique brand of divisive spin over the Internet, on the nightly news, at political rallies – even during sporting events.
We're told that our financial future hangs in the balance.
Not true.
In fact, there is NO documentable link between stock market performance and the outcome of midterm elections...
Hard to believe?
Yes.
Counter-intuitive?
Definitely.
True?
Beyond any shadow of a doubt.
My research shows that the numbers have never been more important to our country's history and its future... your future... because that's where profits really hit home.
The war on success and on your wallet has never been stronger, nor has the culture of blame that seems to pervade our every waking minute.
[CRUCIAL] Why the Government May Not Want You to Know about This $11.1B Money Pool
More investors need to put down their smartphones and take a good close look at the facts.
Perhaps then, they'd enjoy the same kind of visionary thinking and insightful investing success we do here at Total Wealth.
Take a look...
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The following chart is courtesy of Martin Fridson, whose research agrees with my own on this. He's Chief Investment Officer for Lehmann, Livian, Fridson Advisors LLC, and a Forbes contributor.
Figure 1 - Source: Martin Fridson, Forbes.com
Yes, you are reading that correctly.
There is no statistically significant correlation between who wins – Democrat or Republican – and what happens next in the stock market.
None.
And if there's a change in control, like many strident critics insist will be the case?
Even that won't do it.
Both the House and Senate have completely flipped during midterm elections four times since 1930. Twice to the Republicans in 1946 and 1994. And twice to the Democrats in 1954 and 2006.
Further, the House – but not the Senate – flipped to the Democrats in 1930 and to the Republicans in 2010. While the Senate – but not the House – flipped from Republican to Democrat in 1986.
Yet, the numbers stand.
The hypocrisy will, of course, be glaring.
Wall Street is going to tell you that the elections are the greatest thing since sliced bread... just remember their sole objective is to separate you from your money by trading against you or saying one thing and investing in exactly the opposite direction.
Washington will tell you that our country is going to come unglued if the "right" party doesn't win. And as far as they're concerned, maintaining or regaining control is all that matters. The people who actually live here – read: you and me – are an afterthought that interferes with their lust for power.
Trade, tariffs, wages, healthcare... pick an issue.
Politics never dictate profits, but profits sure as hell dictate politics.
Shift your thinking accordingly and you will not only be a step ahead of the herd but, chances are, a whole lot more profitable.
Concentrate on the Unstoppable Trends and the "must-have" companies led by world-class CEOs.
Case in point, I shared a great play in the global defense industry with you earlier this week. It's filled with companies making new highs and which are enjoying a global renaissance in defense spending that will top $1.83 trillion next year, according to Statista.
No self-serving politician on either side of the aisle will leave this country exposed, which means that defense spending will continue – even accelerate – by this time next year. And the markets will reflect that.
Massive Bet: Keith Fitz-Gerald is wagering nearly $10 million that he can show his readers average gains of 350% per week (including partial and full closeouts) thanks to his recommendations he finds by knowing how to spot this pattern in regular stocks. Click here for details…
The reverse is also true, and again, elections have nothing to do with the inevitable.
For instance, I told you to avoid, and even short, Sears Holding Corp. (Nasdaq: SHLD) and General Electric Co. (NYSE: GE) years ago, even going so far as to say both companies should be on "deathwatch" – much to the incredulous amusement of many investors and members of the traditional financial analyst community who couldn't believe what I was saying and who swore on a stack of Bibles that a turnaround was coming.
Nobody's laughing now.
GE just tanked to nine-year lows of $11.22 on Sept. 20, as the company's core power business continues to stumble. Sears is also trading near a record low, and its CEO, "Fast Eddie" Lampert, is desperately trying to restructure the company's debt by reducing it to "only" $1.2 billion.
Just last month, I recommended the one company that's almost totally immune from a trade war with China in our paid sister service, the Money Map Report. As of Sept. 21, it was already up 10.8% versus only 1.8% from the S&P 500 – a trajectory that puts it on track for an annualized gain of 274.53%.
I'd love to give you the name, but I need to hold back to be fair to every single one of the paid readers who have put their trust in me to help them profit from the world's best investment opportunities by gaining more exclusive and timely access to my research.
My point in telling you this is NOT to sell you a subscription. Of course, that'd be nice, but again, that's not my point.
What I hope you'll take away from our time together today is that there are always profits out there if you know where to look and what to look for.
And it's my job to help you find 'em.
No matter who gets elected.
This Guy Called the 2008 Crisis: Now He Sees Another Red Flag
When Keith Fitz-Gerald called the 2008 Financial Crisis long before it happened, no one listened to him.
And you know how that story ended.
Ten years later, Keith sees another crash coming - and it’s going to happen THIS YEAR.
If you didn’t learn last time, maybe you’ll heed his warnings this time.
Click here to learn how to protect yourself.
The post The Most Controversial (and Profitable) Article You're Going to Read Ahead of Midterm Elections appeared first on Total Wealth.
About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.