Are you as sick of seeing political ads as I am?
Here in Florida, they started about 2 months ago and have only ramped up from there.
First, it was the ads where the candidates just told you who they were, what they were running for, and what their stance was on certain issues.
Those may be boring and contrived – but I prefer them to the ones that followed: the smear pieces. You know, those are the ads where they just sling mud at their opponents? Those are vile and ugly – and I can’t wait for it to stop.
That being said, there’s another reason I can’t wait for these mid-term elections to be over…
And that’s the fact that they could keep the markets buzzing.
How?
Well, let’s just say there’s something brewing that could make investors like us very happy.
So, let’s take a quick look at how things are shaping up…
It seems that Democrats will most likely gain seats in the House and Republicans look like they’ll gain a few seats in the Senate.
Now, the X factor is whether or not the Democrats gain enough seats in the house to gain control of it. Will they? Possibly – in fact – it’s quite possible, but it’s an election, and nothing is a foregone conclusion.
However, IF the Democrats gain control of the house and the Republicans maintain control of the Senate – then investors around the world should all be jumping for joy – because THIS is what we want in order to keep the markets moving in a bullish direction.
Why?
Well, if the GOP controls the Senate and the DNC controls the House – we’re likely going to experience something called “gridlock.”
Gridlock in the U.S. government means that laws and regulations tend to not get passed because neither side wants to let through what the other is pushing.
It’s childish when you really think about it – but we’re not here to talk about that…
We’re here to talk about what that gridlock means.
It may be easier to first talk about what NOT having gridlock means…
In a traditional form of government – markets often face the possibility of big legislation passing. Whenever big legislation gets passed – investors tend to shy away from putting more money into the market.
Why?
Because they know that big legislation can hinder what companies or the market itself can do. It can severely impede the ability to make money – so it makes sense that investors tend to shy away during traditional forms of government.
We can see this at work (normally) during the first two years of a president’s term – as they tend to be weaker, fiscally speaking – than the last two years of their term.
What happens in the second half of their term is – the midterm elections often render gridlock and when that happens, things get interesting.
Or, for how this other writer put it, “With political uncertainty decreased, stocks party.”
That’s what we want – we want a party.
What’s even more crazy to keep in mind is the fact that we haven’t experienced a negative third year of a president’s term since FDR was navigating the craziness of Hitler and WWII.
But here’s what’s REALLY interesting…
Stocks are WAY up since Trump was elected in 2016.
People were calling it the “Trump Bump” – and expected there to be a massive correction in the first few months of his term. However, that massive correction never really came.
Sure, we’ve had a few down days – but nothing like a lot of the economists were calling for.
So, it begs the question…
How BIG is 2019 going to be for stocks?
If Democrats win control of the House – 2019 could be HUGE for stocks.
Absolutely HUGE. And even if they don’t win – 2019 could still be BIG.
Which is why some investors are loading up now – while stocks could possibly be the cheapest we see them for the next 2 years…
If not longer, depending on whether Trump wins a second term in office.
Which is why GorillaTrades subscribers are getting more emails than what you’d think…
Things are heating up in preparation for the outcome of these elections and the data is reflecting it.
More and more stocks are meeting all of the strict technical requirements of the GorillaTrades trading matrix – and I think a lot of it has to do with the upcoming elections.
How much higher can things go? Who knows…
It’s definitely something to think about.
But for now, my subscribers can just sit back and decide whether or not they want to buy these recommendations or not.
Hopefully, they see the writing on the wall and want to load up while the loading is good!
If you haven’t done so, you should consider doing the same…
Because we could be in for one hell of a ride come January!
“There are many ways of going forward, but only one way of standing still.” – Franklin D. Roosevelt
