Election Countdown: How Key Asset Classes Could Be Affected and How to Prepare Your Portfolio

Damion Lupo
October 02, 2024

Turnkey Retirement Newsletter: Volume 28

Welcome back to another volume of turnkey retirement!

With approximately one month remaining until the elections, it's natural to consider the broader economic implications that the outcomes could have. Regardless of which candidate you support or the final result, it’s essential to examine the potential impacts on various asset classes, including cryptocurrency, real estate, large-cap and small-cap stocks, and energy. Each sector will be influenced in unique ways, and as an investor, it’s crucial to assess these factors in advance.

Below are some resources to guide you in evaluating these impacts and positioning your portfolio strategically. Rather than adopting a conservative approach by liquidating assets and holding cash, which may not offer protection against inflation, it’s wiser to analyze the effects of the election on different asset classes. This will help you make informed decisions that safeguard your investments and provide better resilience during periods of inflation.

Stocks Falter While Havens Gain on Mideast Strife: Markets Wrap

(Bloomberg) -- The persistent rally in stocks was knocked for a loop Tuesday as investors retreated to safer corners of the market when the conflict in the Middle East intensified.Most Read from BloombergA 7,000-Year-Old City Emerges as a Haven from Dubai’s Sky-High RentsGang Violence Is Moving to the Amazon’s Fast-Growing CitiesA Housing Crisis Brews in Rwanda’s Capital CityNew Rowhouses in London That Offer a Bridge to the 19th CenturyClimate Migrants Stand to Overwhelm World’s MegacitiesHaven

Geopolitical tensions lead to fluctuations in the assets you prefer to buy, sell, and hold. How are your positions currently influenced and what are your plans as you weigh current events?

Gold and Silver once again remain safe-haven assets in times of turmoil. Gold is up over $600/oz this year and silver is over $7/oz. With the recent rate cuts, inflation fears, wars on the horizon, and continued negative sentiment toward the value of the US dollar, Goldman Sachs has increased its end-of-year gold projections by $200/oz (now sitting at $2,900).

The Closing Word

I was having a conversation with our own gold expert, Taylor Huff, the other day. He described a scenario where people who have already invested in gold that call in seem to have a different mindset than those who are new to the game. The main difference is the viewpoint on “what is real wealth.”

Looking at wealth strictly as a dollar value (what Wall Street has conditioned us all to do), means that everything will always seem expensive, but many who are wanting to buy right now (which most central banks are also doing by the way), are doing so based on a different understanding of value.

Looking at wealth as the value that the THING holds allows us to set ourselves up for long-term success in most any economic environment. Gold and Silver consistently hold value against most any currency and have done so for all of human history. Many fiat currencies have come and gone in the meantime. 

To Freedom,

Damion