3 Big Post-Election Concerns

Focus: STRATEGIES

Howard Gold Image Howard Gold Founder & President, GoldenEgg Investing

The presidential election is over—finally! A million campaign ads have run and $6 billion was spent—all to reelect President Obama and keep the House of Representatives under Republican control and the Senate in Democratic hands. Who can possibly think it was worth it?

But right now I want to address what’s next for investors—not traders, not stock pickers trying to “play” post-election trends, but the rest of us who have most of our money in funds and exchange traded funds (ETFs) and occasionally adjust our portfolios in response to market moves.

I think the election’s results raises three big concerns:

  • continued gridlock in Washington
  • perpetuation of the easy-money regime at the Federal Reserve
  • and a possible international crisis involving Israel and Iran early next year

“I think this election is...probably going to intensify the gridlock and dysfunction,” Greg Valliere, chief political strategist at Potomac Research Group, told me.

Valliere has been observing Washington, DC for three decades at the nexus of politics and finance—a hot ticket in today’s macro-driven markets. I’ve interviewed him several times, and usually he believes that things will work out. But not now.

“I would say there’s no agreement on major issues.