Politics seem to be everywhere right now.
The Capitol Building was stormed….
Democrats have swept both houses of congress….
President Trump has been banned from Twitter…..
The S&P 500 rallied just under 2% this week.
How is that possible with everything going on in Washington DC.
The answer is simple:
Only certain kinds of politics matter to the markets…
This week my DC insider Frank Gregory and I did our members only discussion on how the new president will affect markets.
He shared a really important chart:
The above is market returns by president since the 1920’s.
What do you notice?
The market simply keeps going up!
Politics have polluted our daily lives where it feels like they have an affect on EVERYTHING!
Here is an insider tip:
The market does not care if a Democrat or a Republican is president.
It does not care who controls congress.
When we have an all democratic controlled political climate in Washington, the market, on average, goes up over 13%.
Think about that.
My conservative friends are probably shocked.
Guess what liberals,
It goes up when Republicans control everything too.
Politics are only one piece of a very large pie that makes up WHY the market moves every day.
The macro economic environment always has a greater input into market movement.
“Macro economics,” are things like trade deals and imports/exports.
Right now, the market sees the economy opening up in the near future and is pricing itself as such.
So rather than dwelling on what is going on in Washington, smart traders are going to pay more attention to what is going to happen to the economy.
Is the market over its ski’s….maybe…
…but until we actually see a sell off, traders should do what I have been told to do from my 1st day at Group 1 Trading…
“Trade what I see, not what I think.”
Your Only Option
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