"What will your vote mean as it concerns stock market?" by: John Sample

   By the time you read this, you survived the onslaught of political ads that rival the invasion of locusts. 
   I hope your candidate was successful and you are happy with all that will occur because of the election. 
   The outcome on the national level as it concerns the stock market will be fun to watch and to speculate as to the direction. 
   Some implied that a Democratic takeover of the house will cause a minor correction of less than 5 percent and a Democratic takeover of the House and Senate would result in a real correction of 10 to 15 percent.
   With money on the sidelines due to rising interest rates, a money manager indicated that they would invest after the correction. My point is that much may be made of the impact, but I dare say that little of consequence will occur over the next six to nine months. 
   The same person though projected new highs if the Republicans hold on to control of Congress. I tend to ignore such speculation as this person’s political leanings are to the right. 
   I must say though that he is incredibly wealthy from his success in the stock market so I suppose I should pay attention. 
   As to the markets, the volatility is remarkable. We had over 10 straight trading days of triple-digit movements. 
   Much of this can be attributed to the FANG stocks. 
   First it was Facebook forecasting higher expenses to protect privacy. Then it was Amazon acknowledging that Target and Walmart are not dead yet as Amazon is waiving the minimum purchase requirement to get free shipping. 
   Next came concerns about Apple’s ability to compete in China. 
   Netflix was punished for something but not sure it made sense. 
   Overall, the markets moved below the 200-day trading average and we had a correction. That correction left the markets barely up 3 percent for the year. The previous two Presidents experienced double-digit gains prior to the mid-term elections. How the times are changing. I guess.
   As if local politics was not enough, you have the Administration placing sanctions back on Iran. 
   At least they have given countries a six-month reprieve on importing oil from Iran. The increased exports of Iranian oil moved West Texas Crude from above $70 a barrel back to just above $60. 
   Those who expect infrastructure constraints in the Permian Basin will be relieved just about the time the harder crackdown in oil exports from Iran come into play keeping the pressure on crude prices. 
   It has not been a pretty picture if you own energy stocks.
   Given the seriousness that most take the elections at hand, I thought it was amusing what Under Armor decided to do to maintain financial integrity. 
   They announced that they will no longer expense the money spent at strip clubs for entertainment. 
   And corporate leaders wonder why most people have little or no respect for the greed and avarice of corporate tycoons. 
   As is always the case, perception is taken over reality. 
   But what do they expect when the little guy always gets punished and the big guy skates by. Fairness requires we all have an equal stake in the game. 

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