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Get set for an election year rally

06.04.08

It's finally official: It'll be Democrat Barack Obama vs. Republican John McCain in November. Well, it won't be officially official until the party conventions, but that's just a technicality at this point. Besides, we're here to tell you how to invest, not worry about what superdelegates are up to!

So how will all this election hoopla affect the market? Well, typically you want to sell before the summer, since the market historically lags between May and October. But during presidential election years, Wall Street historically rallies into the November election and then for about 100 days after a new president takes the oath of office in late January. Call it a "honeymoon period."

But after those 100 days, the stock market begins to get volatile when the media and Wall Street realize that the new president really cannot fix much of anything and that many campaign promises will not materialize. Don't think that I'm singling out either candidate on this claim–it will be an unfortunate reality regardless of who wins after offering to send out stimulus checks or cut taxes.

Taking advantage of market trends

Whether you're building a portfolio or keeping watch over existing investments, it's important to recognize trends in the stock market. Right now, we're riding the election-year rally. But it's also a good time to get into the market because of other factors including record crude oil prices and a booming demand for food.

For instance, you can benefit from the global food crunch by investing in companies that serve farmers such as fertilizer companies and herbicide manufacturers. One great stock right now is Deere & Company (DE), which makes those iconic green tractors and other farm equipment. My Blue Chip Growth subscribers have enjoyed returns of 12% in just four months. Another smart investment is in the farms themselves, like egg-producing giant Cal-Maine Foods (CALM). This company has given Blue Chip Growth subscribers–are you ready?–profits of more than 110%!

By adding up stock market news, Wall Street history and the profitability of specific companies, an investor can be sure his returns beat the market. It's this responsible investing strategy that I've been using for the past 27 years, and it's how my Blue Chip Growth portfolio consistently beats the market 3-to-1! Click here to find out more about my guarantee to give you profitable advice on how to invest!

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Week of 11.11.08
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BP PLC (ADS)BPCHOLD
Chevron Corp.CVXABUY
ConocoPhillipsCOPBBUY
Exxon Mobil CoXOMABUY
Occidental PetOXYABUY
Transocean IncRIGBBUY
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Abbott LaboratABTABUY
Amgen Inc.AMGNABUY
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