Lately, it appears as if the country (and markets) are holding their collective breath until November 8th. This is unlike any election we have ever seen and with a month to go, the outcome is still uncertain. And while there are many things about markets that change over time, there is one constant - they don't like uncertainty.
However, while uncertainty reigns supreme in the political world (with the election as well as with other key areas such as interest rate policy), markets are moving forward and producing very strong returns (see summary of results below). As you will see, bond markets are up 4-6% year to date, with US equity markets up in similar fashion (S&P up 6%), international markets up 1.7%, and emerging markets up over 16%.
So what now? How do you invest and grow your wealth in a time where it feels we are all waiting for the other shoe to drop? Simple - keep your shopping list handy. As investors, we are continually allocating capital to the greatest opportunities. We are evaluating businesses and determining which have strong probabilities for future growth. We are studying economic indicators and performance of various sectors and countries. These actions and many others lead us to a shopping list - a list of the investments we view as the best of the bunch. A list of our "must haves," provided the price and valuation is right.
As markets ebb and flow and experience pullbacks, we always have our list handy and use any pullbacks as an opportunity to buy. After all, there's no reason we shouldn't treat the stock market like any other market - know what you like and then seek to buy it when it's "on sale."
Rest assured, we are watching these key world events very closely and are keenly aware of the underpinnings of uncertainty and instability. However, we are even more aware of the incredible country and world in which we are living and see countless opportunities to grow capital.
Stay the course. Stay patient. Stay committed to your strategy. And happy shopping