With the midterm elections behind us and more divisive politicking ahead of us, it looks like nothing’s changed in terms of Republicans and Democrats fighting like, well, bulls and bears.
Only, this time it’s different.
Not only are politics going to rip apart the country, perhaps like few other times in America’s history, but also bad blood boiling over into hatred will turn Americans (and bulls and bears) into raging lunatics.
Considering how volatile the stock market’s been lately, odds are that whatever the outcome of today’s midterm elections will be, the market’s likely to react strongly.
Three possible political outcomes could arise from today’s midterm elections.
When heavily jaded and weighted emotions are sidestepped, the consensus is that Democrats will win control of the House of Representatives and Republicans will retain control of the Senate;
Next, there’s an even bet out there that the Republicans will retain control of both Houses;
Then, based on Democrats more vocal proponents, there’s a better-than-even bet that Democrats will end up winning a majority in both the House and Senate.
And those three possible outcomes could yield three different market reactions.
If the Democrats win a majority in the House and Republicans retain control of the Senate, history tells us a divided government, resulting in frustrating political gridlock, is good for the stock market.
According to Barron’s calculations by John Lynch (Chief Investment Strategist at LPL Financial) and Jeffery Buchbinder (LPL’s Equity Strategist), “The combination of a Republican president and a split Congress resulted in an average annual return of 15.7% for the S&P 500 since 1950.”
Lynch and Buchbinder also said that a “Democratic president and a GOP Congress produced an 18.3% annual return.” Which Randall Forsyth of Barron’s says, “supports the conventional wisdom that Wall Street likes gridlock.”
But, that’s longer term. Those positive numbers are annualized returns.
Given how volatile the market’s been for the past month, day-to-day and even more so intraday, it’s highly likely that in the short-run – in the days after election results are tallied – the market will swing hard one way or the other, or swing up and down wildly trying to get some footing.
Tomorrow, Tuesday, November 6, 2018, could be the day that your financial future changes drastically for the better, enriching the lives of you, your spouse, your children, and even your children’s children.
Or it could be the one you look back on with regret.
I’m an even bigger fan of companies like Facebook Inc. (NasdaqGS:FB) whose stock goes up, and keeps going up, for all the right reasons.
That is, until it drops like a stone.
A lot of investors admittedly missed FB on the way up. But a lot of investors who owned it rode it up and smartly got stopped out because they used trailing stops.
If you’re either one of those investors or neither, you probably don’t want to miss FB’s next move up, but don’t want to see the stock tumble more.
Volatility, like we’ve been seeing, can be scary. But with the method I’m about to share with you, the levels to watch and when to buy and when to exit, has been a staple in my Zenith Trading Circle research service.
Since the beginning of 2018, I’ve shown my Zenith readers opportunities to snag 11 double-digit, 12 triple-digit, and two quadruple-digit winners – the first in Money Map Press history, I might add. That’s total winning gains of over 4,000%.
And if you haven’t had the chance at gains like that this year… Well, that’s pretty sad, to say the least.
Midterm elections are less than a week away, and seven states are voting on what could become one of the biggest “gold rush” industries since – well – the gold rush.
We’re, of course, talking about the “green rush” of cannabis, which has the potential to make millionaires out of investors who sink even small amounts of money into tiny pot stocks.
It’s also bringing in massive amounts of cash for the states that have already legalized. In the first two years alone, Colorado brought in $70 million in tax revenue annually. In three years, that number exploded 250%. Colorado’s tax revenue on marijuana and marijuana products reached about $247 million in 2017.
Michigan could be looking at twice this revenue, because the state has a population twice the size of Colorado’s five million residents. And North Dakota, which houses 750,000 residents, would be looking at about a fifth of the revenue…Which is still $10 million.
And because it’s these numbers are just tax revenues, it would go directly towards improving schools, roads, and infrastructure for the state.
And that’s just the beginning.
The green gold rush is unstoppable, and could prove to be one of the most lucrative sectors in today’s markets – perhaps even in a lifetime. Right now, we stand at the gates of an opportunity that’s set to explode in value, and you’d be surprised who supports these once-controversial stocks.
It was easy to predict which way those stocks were going simply by following their fundamentals. They all enjoyed consistent, stellar growth in revenues and net profits. Fantastic fundamentals drove their stock prices higher and higher, for years.
And they drove benchmark indexes like the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite higher and higher.
That’s because those big-capitalization companies got a lot bigger as their stock prices soared.
Capitalization means market value and is calculated simply by multiplying the number of shares a company has outstanding times the price of a share.
For example, Apple has 4.83 billion shares outstanding. Multiply those by its share price, $213, and you get a capitalization or market value of $1.03 trillion.
As the FAANG stocks’ shares climbed ever higher, their capitalization grew.
That’s important to understand. As their capitalization, and share price in some market benchmarks, increases, the weight they carry in the benchmarks they’re in increases.
In other words, they are so big that they influence levels of the Dow, the S&P 500 and the Nasdaq Composite.
If you’re with me at the Black Diamond Conference in beautiful Carlsbad, CA, or watching with us via the live webinar, I hope you’re finding these presentations help – and profitable.
But if you’re not with us right now, don’t worry. There’s still a chance for you to see what my colleagues and I – Michael A. Robinson, Tom Gentile, and Rick Rule, to name a few – are talking about this week. My team and I will tell you all about it next week.
In the meantime, I have a special treat for you.
You’ve been hearing the words “volatility,” or “crash,” or “catastrophe” so often that it’s probably starting to get old. That, or worry you more. Either makes sense.
But today, I’m going to share with you something I usually only reserve for readers of my elite trading research service, Zenith Trading Circle. And I don’t do this often, folks.
Today, I’m going to give you a peek inside Zenith.
Fox News published a “breaking” story yesterday morning.
And if you’ve been a reader of Wall Street Insights & Indictments for some time, you know that Shah Gilani and the Research Team loves to tear articles apart and give you the real truth.
Everyone loves a good “they got it wrong” story.
But this time they got it right.
The headline was “Politicians’ deceitful promise that nobody has been paying attention to,” with an eye toward underfunded pension liabilities and the lies we’ve been fed that everything’s going to be “okay.”
Pensions for hard-working Americans could be cut up to 50%. The markets’ downward turn this week will mark their third straight week of downside.
And even though pension debt has amassed to $6 trillion, roughly a third of the entire U.S. economy, this is probably the first time you’re hearing about it.
Yesterday, the Dow closed 608.01 points down. On October 18, it fell 266.11 points. October 11 saw a 465.56 drop, and the day before that saw an 842.99-point fall.
These are just small cracks of a market on the brink of something much, much worse.
Think of the old, boarded-up houses you see that sometimes line the streets of neglected neighborhoods. Those houses, once thriving and full of life from the family that dwelled within, are now only echoes of what they once were.
Dilapidated siding, shattered windows, a cracking, crumbling foundation. A sad sight to behold.
This wave was triggered by the first ever FDA-approved cannabis-based drug, Epidiolex, which was created by GW Pharmaceuticals plc (NasdaqGM:GWPH).
In short, this green light from the government could be the initial spark to light the fire for the next wave of “marijuana millionaires.”
But the good news is that the profit potential doesn’t end there.
If you’ve had any doubts or qualms with the marijuana industry, if you want to learn more about it before jumping in, or if you’re not sure how to break into such a lucrative market… We have a huge opportunity for you.
Last week Uber kind of, sort of announced it was going to go public in early 2019 at a valuation of about $120 billion.
It wasn’t Uber directly saying that. It was a Wall Street Journal story that more than likely came from sources at the company.
We can assume the news really came from Uber, because the $120 billion valuation number was based on talks Uber had with potential lead underwriters The Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS). And they wouldn’t have leaked that to the Journal. That number would have had to come from Uber itself.