What if Donald Trump wins the election?
Firstly, I must tell you that I am writing this as an opinion only and in no way is what I say to be considered investment advice.
There are left wing individuals and groups (e.g. antifa) who have said they will burn America to the ground if Trump wins the election. They have already set large cities alight and looted private property. Should this happen it will trigger large falls in the Financial Markets.
I know in Australia, investors are reluctant to take some money off the table because they don’t want to pay Capital Gains Tax but I think it is prudent to lighten off your Portfolio’s and go to 20 or 30% Cash to prepare for an event that could be worse than paying CGT.
If you decide to sell out of some shares, then you can repurchase shares that will do better under whoever wins the election.
If you do not want to sell any positions, then you could just buy Put Options with say a February expiry as things might take a few months to play out.
If you are mainly exposed to the Australian Market then buy XJO options. They may become worthless but that is how insurance works.
Don’t necessarily believe the polls either because although Biden may be ahead in the overall vote it is the college votes that matter. This happened last election when Hilary received more votes but lost the election.
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This article does not take into account the investment objectives, financial situation or needs of a particular person or entity. Before acting on any investment strategy or advice you should first consult with your current ASIC accredited investment professional or seek out a compliant investment professional for such.