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Higgins Capital Management, Inc.

Your Financial Advisor's Investment Tips For The Election Year

Election year! That chaotic carnival of mudslinging, lofty promises, and endless punditry. For the investment-savvy, risk-taking, politically sophisticated renaissance man-person, it's the perfect storm of opportunity and absurdity. The world’s on fire, and we're here to roast marshmallows. So, tighten your seatbelt, grab a cigar, and let's dive into the financial circus of an election year with a wink, a nod, and a shrewd eye for profit.

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Election years are a rollercoaster, and if there's one thing we know, it's that markets hate uncertainty almost as much as politicians love it. But here’s the twist: volatility is not your enemy; it’s your over-enthusiastic ally. While the average investor panics at every swing, you, the renaissance man-person, recognizes opportunity. Remember, the goal is to be the contrarian: buy when others are selling, and sell when others are buying. It’s like the old saying goes, "Be greedy when others are fearful, and fearful when others are greedy."

Elections are not just about the candidates; they're about the issues. Each administration has its darlings and its demons in the market. Here’s where your political savvy comes into play. For instance, defense and infrastructure spending often increases regardless of which party is in power. 

Mega-Cap , Blue-chip stocks might stand resilient through the smoke and mirrors of election years. Their diversified businesses and global reach provide stability in an otherwise tempestuous market. Think of them as your financial lifeboats. They might not offer the thrill of a high-stakes poker game, but they’ll keep you afloat when the seas get rough.

When the market turns into a circus, having liquidity on hand is crucial. Cash gives you the flexibility to pounce on opportunities as they arise and provides a buffer against unexpected downturns. While holding cash might seem counterintuitive in a high-flying market, it’s a strategic move in an election year. Market overreactions are common, and being able to buy undervalued assets at a moment’s notice can yield significant returns.

The American political circus isn't the only show in town. The Federal Reserve, that enigmatic institution pulling the strings behind the economic curtain, is always in play during election years. Their policies on interest rates can make or break markets. Monitor the Fed’s statements and minutes from their meetings. Interest rate changes can impact everything from bond yields to mortgage rates, influencing sectors across the board. Understanding the Fed’s direction can give you a significant edge in positioning your investments.

The election year is a gauntlet of insanity based reality TV shows. 
The information contained in this Higgins Capital communication is provided for information purposes and is not a solicitation or offer to buy or sell any securities or related financial instruments in any jurisdiction. Past performance does not guarantee future results.

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