The US election is approaching, what are my investment plans? Investment Tips on Stock Market

3/4 of 2020 has already passed! The stock market continued to rise in Octorber, and the market demand for Saas shares continued to increase. A while ago, everyone’s worries about the bursting of the bubble seemed to be kicked aside. What is interesting is that VTI dropped from +9.4% back to +5.5%. Frankly, the valuations of many of my holdings are really high, but the market seems to be not care about it. I think there should not be a big drop before the end of the election, and it may be that way. The topic on the Internet recently is nothing more than the US presidential election, but it really should not have an impact on long-term investment. Let me explain more.

• Worried about the Stock Market? Your Long Term Investment is Safe

There are many events in our world that will have an impact on the stock market in the short term, but the results will not be much worse in the long run. A good company in a growth industry will develop well. For example, I’m trying to think about the major events in the past 13 years that have affected the development of some high-quality companies. I really can’t remember them at all. The only thing is that the 2008 subprime mortgage storm caused problems with the bank I like to use (not investment) and was acquired by JPM. Other things like war, Brexit, oil prices soaring and falling, the election of the Democratic Party or Republican Party, what long-term impact do you think will have on today’s companies? The answer is no, not at all. FAANG or other trending companies are still developing. In difficult circumstances, stronger companies will perform better. In today’s technology-led world, these companies can launch faster, better, and cheaper products/services.

Since I talked about elections, let me talk a little bit more about my thoughts, because this time I think it will have a great impact on the United States and the world.

Let me talk about a myth: the election of the Republican Party is better for the stock market or the economy. Based on my personal experience, when I first came to the United States, the old Republican Bush became president. The economy during his four-year tenure was very bad, so he lost his second term. Later, the 1992 Democrat Bill Clinton became president. Within eight years, the US economy was very prosperous and many people made money. The American people are weird, and when things go well, they want to change things. At the end of Bill Clinton’s tenure, he felt that he would change the Republican Party to be the president, and then he would change Bush to take office. In the first few years after 2000 came to power, the economy was actually quite good, but the long-term impact of the policy was very bad. The little Bushes are good, but they don’t know how to govern the country. They have caused a lot of problems. Finally, the economy exploded in 2008, and Obama became the president of the Democratic Party. During Obama’s tenure, the US economy was pulled back from the bottom, and American prestige reached a high point. When he left office in 2016, the stock market reached a new high, all the data was good, and the fiscal deficit also improved a lot. As a result, Trump was elected in 2016. There are several reasons behind this:

1. The unequal distribution of wealth and the widening gap between the rich and the poor have made inland residents of the United States unable to feel an improvement in their lives.
2. The Soviet-Russian information war divided the American people.
3. Hillary Clinton is not attractive enough.

After Trump was elected, the economy continued in Obama, and the company tax was greatly reduced, causing the stock market to soar. But I think this policy is also an overdraft in the future. What Trump knows best is to use other people’s money. Moreover, as mentioned before, the problem of unequal distribution of wealth and the widening gap between rich and poor has only intensified. In terms of governance of the country, I feel that the American people have been divided, the pneumonia epidemic has been handled badly, and the environmental protection policy has regressed. To be honest, I have never been so worried about the situation in the United States and the world.

• So, What’s My Plans on Stock Market?

So what are my plans for the general election? It’s nothing right now, but the stock market is very exaggerated, and I don’t know how it will go next. If it continues to rise, some stocks really feel like bubbles. I probably will just see what will happened and it will decide what i will do. The actual cash on hand currently is about 30%. If there is any action, it will be due to valuation, not simply because of elections. You can see it in the retrospective. If you want to know more immediately, please subscribe. But predicting that in the short-term is really mostly a waste of work. The more important thing is to keep your mind stable and not to fall asleep.