A Tale of Two Futures

Few political events in our lifetime have the potential for greater impact on the U.S. economy and your investments than the upcoming elections.

When the dust settles on November 2nd, two scenarios are possible:

Scenario A: Our leaders in Washington are emboldened by the election results and eager to spend even more on economic stimulus, housing market bailouts and other government programs,

Or …

Scenario B: They are thrown out of office or further chastened by voters fed up with the recent explosion in government deficits and debts.

Just 37 days from today, investors all over the world could wake up to one of these EXTREMELY different futures, setting us on trajectories with radically different consequences. I want to give you a big head start.

You now have just over one month to sell the investments that are most likely to get slaughtered as U.S. economic policy changes …

And you have just over one month to buy the investments that are likely to surge in the new economic environment — hopefully, to buy them at bargain prices before investors begin driving them higher.

But to help decide which investments you should be buying and selling now, you must first have a clear vision of the most probable election outcome and how it’s likely to impact the economy and the investment markets.

To gauge the mood of our 600,000-plus readers — and to help you begin thinking your way through this process — I posed two critical questions on my personal blog yesterday:

QUESTION #1: What are the chances we’ll see more bailouts and stimulus spending in 2011 and 2012?

As always, the response from our readers has been remarkable. The clear majority seem to believe that it is already unlikely that Congress will pass major new stimulus bills.

According to our readers, any Congressperson who votes to bail out another wealthy banker or corporate fat cat with taxpayer dollars would be taking his political life in his own hands …

And any increase in the number of fiscal conservatives in Congress will only make further spending on stimulus and bailouts even less likely.

QUESTION #2: How do you think the economy and investment markets are likely to react if stimulus spending is reduced or is actually rolled back?

The answer? Most of our readers say if investors believe that Washington stimulus spending is history, we’ll see massive volatility in stocks and other investment markets.

Now, it’s time to get more specific; to determine how our 600,000-plus investor/readers are likely to vote with their own money as Congress changes.

Just click this link to jump over to my personal blog and give us your answer to today’s Questions of the Day:

How will a more tightfisted Congress and a halt in stimulus spending impact stocks going forward?

How about bonds? The dollar? Oil and other commodities?

Gold has been on a tear lately; setting one new all-time high after another. How do you see the elections impacting gold prices for the next year or two?

Be sure NOT to miss this all-important discussion. Not only will your insights go a long way towards helping your fellow investors, their ideas could help make a real difference in the profitability of every investment you make for years to come!

Good luck and God bless!

Martin

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