The Presidential Winner the Markets Fear
The presidential election is right around the corner. And while we don’t have much interest in bringing politics into the Digest, when prospective policies from the various candidates threaten to impact your wealth, that’s when we begin taking notice.
Today, we bring you an important essay from our own CEO, Brian Hunt. Recently, oddsmakers in Las Vegas suggested we’ll be seeing a democratic president next year — and at present, the frontrunner is Elizabeth Warren.
Whether you realize it or not, Warren has some policy ideas that could have a profound impact on your portfolio. Today, let’s see what’s happening here — and more importantly, what you can do to protect your money.
I’ll let Brian take it from here.
The News Out of Las Vegas That’s Terrifying InvestorsBy Brian Hunt CEO, InvestorPlace
According to the odds in Las Vegas, the Democrats will win the White House next year.
For the first time since the dozen-plus field of Ds started forming, at least in Vegas, they’ve inched ahead of the Republicans.
Las Vegas odds are the single best bellwether of future events … so that’s terrifying.
Moreover, Elizabeth Warren has passed Joe Biden in some national polls.
If you listen to the blowhards on financial television, you’d think the market should be down by 10% … 15% … 20%.
Chaos in the streets.
But here’s the thing.
NOTHING HAS HAPPENED YET.
Everything I just quoted you are odds, polls, paper pushing … nothing.
The House has not impeached President Donald Trump.
Sen. Warren has not won the Democratic nomination for president.
And the wannabe socialists in the Democratic Party certainly have not won the White House yet.
But there’s that pesky word again — “yet.”
While I have hope the American people won’t elect a socialist-leaning candidate like Sen. Warren, I lack faith …
Why Wall Street Is Terrified
Now, I don’t worry too much about impeachment. There’s little chance the Republican-controlled Senate will remove Trump from office.
It’s a distraction.
But a Warren presidency, that I’m concerned about … and I’m not alone.
“They won’t open the stock market if Elizabeth Warren is the next president.”
That’s not some attention-seeking, wild-eyed blogger.
It’s billionaire hedge fund manager Leon Cooperman at an investing conference in New York on Sept. 19.
He was joking, of course — but his meaning was clear.
If Sen. Warren wins, “it would be a bear market, and they go on for a year and go down 25%,” Cooperman went on to say. “You don’t make the poor people rich by making rich people poor.”
I agree — and it’s one of the reasons why I recently commissioned one of my team members to put together a .
Cooperman isn’t the only Wall Street bigwig afraid of what could happen if Warren takes the White House.
CNBC‘s Jim Cramer took to the airwaves Sept. 10 to say that Wall Street bankers are very concerned about Sen. Warren taking the White House.
“When you get off the desk and talk to executives, they’re more fearful of her winning,” Cramer said of the prospect of a Warren presidency. They’re telling him, repeatedly, “‘she’s got to be stopped, she’s got to be stopped.'”
Now many high-rolling Wall Street Democrats are saying they will sit out the election or maybe even back Trump if Warren is the candidate.
“You’re in a box because, you’re a Democrat and you’re thinking, ‘I want to help the party,'” CNBC quoted an unnamed senior private-equity executive for a Sept. 25 story. “‘But she’s going to hurt me, so I’m going to help President Trump.'”
You can see where these guys are coming from.
Immediately, if Warren gets her way, there would be massive expansions of federal power and spending.
“Medicare for All,” the “Green New Deal,” free college. All would come at an astronomical cost … and send our national debt into the stratosphere.
And those are just a few pieces of Warren’s master plan.
Because the media isn’t saying much about it, most folks don’t realize that she has a scheme that could devastate Americans’ retirement savings …
The Plot to Destroy Capitalism
Your retirement savings are your castle.
That much is obvious.
However, you may not realize that your retirement savings are also America’s castle.
Households headed by people over the age of 55 own 73% of America’s total wealth, according to the Federal Reserve, and the same value of domestically owned stocks.
That may sound unfair — but it makes sense. Older Americans’ wealth allows them to make a graceful transition from work to retirement. And that helps keep the nation stable and prosperous.
That’s what galls about Warren’s proposed “Accountable Capitalism Act.”
If passed, the act would obliterate the federal mandate that public companies act on behalf of their shareholders.
Warren believes this would benefit employees, customers, communities, and the environment — and really sock it to plutocrats’ wallets.
Does she not understand who owns stocks?
Sure, the truly wealthy do — but the vast majority of stocks are owned by people saving for their retirement.
Folks like you and me.
Her plan would also …
• Mandate that public companies share profits with seven interest groups other than shareholders.
• Require corporations with $1 billion in revenue to get a government charter to operate their businesses, essentially turning them into “nonprofits.”
• Subject businesses to massive more regulation.
• Require that 2/5 or more of boards of directors be elected by the employees.
Her intentions may be good … but Warren’s plan would wipe out the protection retirees currently enjoy.
Now … I don’t believe Warren’s plan will ever get through Congress.
But imagine if it did.
It would prevent companies from ever making meaningful profits.
It would destroy capitalism.
Even so, if Warren couldn’t get her plans through Congress, she would work around the edges through “executive orders” and other nondemocratic schemes to get some of these proposals on the books.
Any way you look at it, a Warren presidency would be disastrous for our economy, the stock market, and your retirement.
No wonder Wall Street is terrified.
But not me. While I’m concerned — who isn’t? — I’m not scared.
Here’s why …
Six Steps to Take Now
I know that you can prepare for the unpredictable. .
I’m also not scared because I know Eric Fry.
Eric is a global economist, former hedge fund manager, and entrepreneur who has gained notoriety for calling nearly every major stock market move of the last 25 years.
In fact, he was one of the few analysts who predicted the last market crash, in 2007-’08.
But instead of running to CNBC and crying about the sky falling, he got down to business and showed his readers how to short dozens of the big banks and mortgage companies that eventually went bust.
People who followed his recommendations could have walked away with gains like 1,415% on Countrywide Financial … 4,408% on Fannie Mae … and even 6,425% on Freddie Mac.
Results like those are why I’m proud Eric is on the InvestorPlace team. And they’re why I charged him with putting together .
This 140-page book lays out six essential tactics that every American should take to insure their wealth. (One of them shows you how to make huge gains even in the face of Warren or another Democrat dragging us closer to socialism.)
The time to make a defensive plan is now — before this war on retirees’ wealth gets started.
The odds are saying you’ll need it.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.