How to grow your wealth in any market

America has always been a country of optimists.

The pioneers didn’t come here because life would be easier. They came believing that with work and faith they could make their lives better.

One of the fundamental ideas behind the American dream is that hard work and a little luck can allow anyone to improve their station in life.

Internationally, we are seen as positive people.

A European friend once remarked to me that not only do Americans say things like “wonderful” frequently…but they actually mean it.

But it was hard to feel positive this year.

We still live in what we call the Age of Chaos.

If you are new to DigestThe Age of Chaos is the idea that exponential technical progress faster than ever before (eg artificial intelligence), government policies that create inflation, volatility and currency degradation, plus the huge changes brought about by the end of globalization have completely turbo-charged the rate of change we see in the world.

Industries flourish overnight while others are destroyed at a rapid pace.

And all of this means that big winners and big losers are being created faster than ever before in human history.

This is the heart of the Age of Chaos.

We write about this topic often because it is a large part of the macroeconomic environment in which investors live.

This year felt particularly chaotic because of the hotly contested election.

But no one should mistake recognition of the crazy environment we live in for pessimism.

In fact, we feel the exact opposite. And you should too.

I hope you didn’t miss the rally

This week, the Federal Reserve gave investors a jumbo rate cut and removed a big unknown that has hung over the market for most of the year.

(Congratulations to me, by the way Digest colleague Jeff Remsburg who told everyone to bet on a 50 basis point discount the day before the meeting.)

So much anticipation has built up around this Fed meeting. So many articles and essays written, so many interviews and statements by talking heads about what the Fed should have, should have done, and will do in the future.

Honestly, after this last meeting, everyone should take a deep breath.

We are now clearly in a rate cut cycle.

But even before the Fed’s decision, it’s been a great year for investors.

Despite what seems like living in a constant state of disruption, the S&P has returned over 19% year to date.

Considering the average return of the S&P over the last 30 years is about 10%, this year would be remarkable!

The war in Europe and the Middle East did not stop him.

The most contentious and controversial presidential race in our country’s history didn’t stop her.

And high interest rates sure didn’t stop her.

The actual outcome of November’s election remains a big question mark, but despite the hyperbole spewed by media stars looking for big ratings, the market tends to do just as well (or poorly) under Democratic or Republican administrations.

Financial advisory firm Edward Jones published an article earlier this year noting this fact.

Despite the temptation to tie market performance to election results, stocks have performed well in both the Republican era (R) and Democrat (d) presidents. The strongest returns occurred during F. Roosevelt (d), Clinton (d), Eisenhower (R) and Reagan (R) presidents.

Since 1930, there have been 23 US presidential elections, with Democratic candidates winning 13 times and Republicans winning the remaining 10. The average annualized price return (excluding dividends) of the S&P 500 was 9.6% when it won a Democrat and 5.7% when a Republican. won. But when looking at longer horizons, such as 10 years after the election, the results for both parties are similar, with the S&P 500 returning around 7%.

The truth is that the overall economy has a lot more to do with the performance of the stock market than who sleeps in the White House. Sure, politics can affect the economy, but big stories like Age of Chaos will continue regardless of who wins in November.

And it’s easy to get carried away by the maddening pace of change.

It’s easy to see why people can see all this change and want to do nothing but put their dollars in a money market fund and feel safer.

But you would have missed 19% upside so far this year.

And maybe you could have done even better if you hadn’t let your emotions get in the way of your investment.

How to maximize your profits

I’ve written before about the critical importance of not letting your emotions affect your investments. The human brain is a wonderful thing that has created amazing art and inventions.

But it is not the best tool for investment decisions.

Next week, macro investment expert Eric Fry will host an exclusive event to help investors get the most out of their portfolios.

Here he describes the ideas behind the event.

Imagine getting into your car and going to the supermarket. But once you hit the road and pick up speed, you panic…
You just noticed that there is no brake pedal. You have no ability to stop or slow down the vehicle.

That’s a recipe for disaster.

You would never choose this scenario, would you? That would be crazy.

But believe it or not, this evokes the way most people manage their investment portfolios. They go into investing with a destination in mind…but without a plan for what to do if things don’t go as expected.

Then, when things don’t go their way, they panic and let their emotions guide their decision making. Instead of simply hitting the gas and slowing to a stop, they take their chances with the old tuck-and-roll maneuver.

You see, deciding to enter into an investment or trade is only Step 1. Dare I say, this is the easy part. The next step, however, is more important. Trade management can draw the line between whether you stop safely or something much creepier…

During the event, Eric will talk about why investors need to rethink the way they invest. Why they must put the power of technology on their side.

The reality is that many fail to maximize the gains from their stocks simply because they allow their emotions to get in the way. This type of investment could become very expensive in the coming months.

The age of chaos has led many people to let their emotions rule their investment choices. Maybe it kept you out of the market and you missed out on a 19% gain. Or maybe you let the winners run too long and let the profits trickle away. Or you were scared of the political climate and got out early in an election that had more wins.

There is a way to emerge in a stronger financial position than you are today.

Eric will tell you all about it on Tuesday, September 24th^th at 8 in the evening at The big sale of 2024 event. He will reveal one of the most critical trade management tools available to any investor.

You can click here to book your place for this free event.

There is a lot of talk of fear right now, even though the market has posted better than average gains.

Instead of letting your emotions affect your portfolio, you can join Eric next Tuesday at The big sale of 2024 and learn how easy it is to use technology to maximize results.

enjoy your weekend,

Luis Hernandez

Editor-in-Chief, InvestorPlace