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Strategies to Crush the Market and Continued Pay Offs No Matter Who Wins the Election!
10/16/2020 10:00 am EST
I love getting those alerts. The ones that come in via email saying something like: “Your account was just credited $XX after stock so-and-so paid a dividend of $XX,” states Mike Larson of Safe Money Report.
In this day and age, those income payouts are crucial. They’re exactly what investors like you and I need. And as I said last week, you don’t have to just settle for one income stream. You can use “double dipping” strategies to generate even more lucrative windfalls!
Meanwhile, markets are continuing to gyrate wildly as we head into the final weeks of this presidential election season. That’s because enough uncertainty remains to keep investors and pundits on their toes—and volatility gauges are elevated across the board.
Some are convinced President Trump can still pull off a win, despite weakening poll numbers. Others are looking for a “Blue Sweep”—a victory for Joe Biden and a Democratic takeover of the Senate (in addition to holding on to control of the House). Depending on how things shake out, we could see BIG moves in stock indices, bond yields, precious metals, and more in early November.
But the funny thing is, all these shorter-term shenanigans don’t much impact my longer-term investment recommendations. That’s because the same “Safe Money” strategies that have worked best since the economic and credit cycles began turning in 2018 will STILL work best after the election!
Look, you know from my updates that all was not well in the markets before Covid-19 struck. An enormous boom/bubble in the corporate debt market created the pre-conditions for a long, drawn-out, tumultuous, unwinding process—one similar to what happened in mortgages after the last major bust. All it took was a trigger event, which the pandemic clearly was.
The Federal Reserve is responding by unleashing the biggest “Money Flood” in the history of the world. It’s buying and backstopping the longest list of credit markets and asset types ever.
But rather than fix the underlying issues, that money flood is instead helping reinflate the value of safer, higher-yielding, higher-rated stocks. Two of my favorite names that fall into this category, which I’ve written about before, just hit all-time highs.
It’s also lighting a fire under precious metals and mining shares. Both are still destroying the S&P 500 performance-wise this year, despite their recent corrections.
These are precisely the kinds of investments that comprise the core of my Safe Money system. They’re doing fantastic. And they should continue to perform very well because the Fed isn’t going to change its policy approach under either a second Trump term or a Biden administration.
Federal Reserve chairman Jay Powell himself said back in June: “We’re not thinking about raising rates. We’re not even thinking about thinking about raising rates.” Other Fed officials have sent out the same message, loudly and clearly, in multiple speeches and interviews since.
My advice? Keep going where the money is flowing, and at least follow the general guidance and sector hints I’ve given you here.
They’ve worked best since 2018. And I’m thoroughly convinced they’ll work best in 2021—regardless of who takes the oath of office in January.
Safe Money Report focuses on these kinds of stocks, which include names in the consumer staples, food and beverage, retail, and health care sectors. Visit Safe Money Report here…
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