My Response to Thursday’s Election Article
By: Steve Smith
Wow! When I sent Thursday’s email about the election I didn’t expect to have so much blowback from it.
Almost as soon as I hit send, the emails started flying back at me….
And some of them were downright hostile!
Most of the responses fell into 3 categories, so I am going to answer those questions/comments today. Enjoy!
1. How can you say the market is going to keep going up if Biden is elected. He wants to increase taxes on business and impose sweeping new regulations. How can that be bullish?
My Response: The market is not going up thanks to fundamentals, for the most part. The market is moving almost 100% based on money printing, low rates, and psychology. The enthusiasm involved with stimulus from the government, I believe, will overwhelm any bad news about taxes or regulations…
And it’s more likely that a Biden presidency will involve MORE stimulus than we are seeing now. In addition, his tax increases and new regulations will not come online on day one. It’ll take a while for those to be put in place.
At the same time, the stimulus will be passed very rapidly…
So all of that is extremely bullish in my opinion.
2. What are your political views/who are you voting for?
My Response: My political views do not match up with any one party – so pigeonholing me is very difficult.
Professionally I am a political atheist. You don’t read my work here and other places for my political commentary, so I don’t engage in political commentary unless it directly affects the market.
As far as who I am going to vote for…I’ll never tell. All I will say is that I am voting for who I think will do the “less bad job.” The way I phrased that should give you some insight into my thoughts on politics.
3. Will America survive this pandemic/depression intact?
My answer: Short answer – Yes.
Longer answer – America is truly the Shining City on the Hill still. Things will likely be tough for a while – and we might even see some drastic changes to our monetary policy…
But will we survive? Of course, we will. And in a few short years opportunity will open up and we will see an incredible boom in the US economy. That is just how these cycles work.
The one thing to keep in mind is that you will need to make responsible choices about trading for the foreseeable future.
Solid stock picking combined with the kind of “safe” leverage options can offer…
That is how you build wealth in all this chaos.
That’s what we do on Options360. Get your trial subscriptions for just $19 here.
To Your Success,
Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.
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