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Anonymous
Hi everyone, after read through and heard many analysis, i can say both candidates affect US companies in good & bad ways and short & long terms.
if you have cash now, will you hold or buy later after the voting? I know that if you are long term holder, you will get it anyway but i am referring more to short term :) (1 month-1 year after the voting)
Much appreciate if you wanna share!
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Lin Yun Heng
26 Oct 2020
Senior Analyst at Delphi
If you are talking about short term, I would rather make use of the volatility and adopt Swing Trading strategy to gain some quick profits.
Investing on the other hand, is a whole different ball game because election is merely a short-term maket phenomenon. Yes, whoever gets elected may have an impact on specific sectors or broad market indices so if you are competent in sieving out sectors which will benefit from whichever President-to-be, then yes go ahead and invest into them.
But you must also understand that the stock market is forward looking and at least 6-12 months ahead of the current economy. By the time you buy in after the election, the expectations have already been priced in so you will just be part of the herd since you are a retail investor without any insider information.
For my own case, I am investing regardless of what the election results are, as my goal is to find companies with solid fundamentals which have great growth prospects and a decent economic moat. Focus on companies instead of news, be confident and trust the companies you own, that is the best bet against any form of uncertainty. I went through the March Crash without selling any of my holdings because I am confident that they will recover. Now I am currently sitting at a +52% gain Year-To-Date.
You can view more of my portfolio here
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Chan Ze Ming
25 Oct 2020
Accountancy and Finance Student at Nanyang Polytechnic
Hello,
Why not half now and half later :X...
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Shortlist companies you want to have positions in.
Depending on your brokerage, competitive platforms like IBKR have fractional shares.
As most answers already advised, instead of choosing pre or post, I say get exposure to both. Get exposure to 20% of your allocated capital for company X pre vote. If it runs up, great, stay invested and buy the dips.
If it crashes down, thatβs where no amount of TA can help you. Doing concrete Fundamental Analysis on a company helps you stay vested and the guts to buy into a bear market.
Helps you stay grounded with investment - though I suggest you do so if you have holding power.
The above is only relevant for equities.
If you already have significant exposure to the market, you can use options to hedge your positions. Wont delve into too much details here, but a simple YouTube or Google search can give you the answers youβre looking for.