Imagine having a rally car, like a smaller-category Ford Fiesta, on the starting line. Right next to it, imagine a semi-trailer truck, with more wheels, a much bigger engine and more horsepower. Now, imagine that the little Ford Fiesta gets installed with the same engine as the semi-trailer, so they’re both racing with the same amount of horsepower. If they both press the pedal to the metal at the same moment, the Fiesta will fly out of the gate much more aggressively than the semi-trailer truck will.
Today’s letter encapsulates our overview of how markets may react to the all-important news flow, which is coming our way and what might happen in December. We’ve gone over this from all angles and my main conclusion is this: risk of a correction is high, but potential for a boom is high as well.
After Barack Obama’s long era in office, America was desperate for change. It wanted a newcomer, a person that wasn’t part of the “swamp,” but who could enact real reform in many of America’s key political agendas.
Around the globe, millions of media personnel, content creators, news websites, propaganda outlets and social media giants are covering the elections; it’s a ratings bonanza.
A record turnout of voting is happening around the United States. The ease of mail-in votes is allowing many more people to express their opinions, where they might otherwise just stay home, be indifferent about it and avoid the crowds.