How Not to Lose Everything and Die Broke

We’ve just been through a very healthy post-election rally that pushed the S&P 500 up a bit more than 6%, as of this week.

The history buffs out there, like me, will note the S&P 500′s “Trump Bump” was a little less than twice as powerful as the 3.7% shot in the arm Franklin D. Roosevelt’s election dealt the index, but a bit less than half as potent as the ripping 13.29% rocket ride Herbert Hoover’s victory “catalyzed” on the S&P 500 between his election in 1928 and his swearing-in. 

But… we all know how that rally ultimately played out for investors of Hoover’s day.

At his inauguration on March 4, 1929, “the Great Engineer,” as Hoover was called, could rightly boast of huge market gains. And of course barely eight months later, by Oct. 29, the U.S. stock market was a smoking ruin, closing the door forever on the Roaring 20s and lifting the curtain on the Great Depression.

Now, I’m not saying we’re in for a repeat performance. Not at all. But I am conscious of the history, and as a dyed-in-the-wool contrarian, I’m inclined to prepare for the worst, especially if the good times are rolling. 

Besides, I agree 100% with our Chief Investment Strategist, Keith Fitz-Gerald, when he says that, “Chance favors the prepared mind.”

So even if it’s the farthest thing from your mind, there’s no time like right now to take in a few of what we here at Money Map Press like to call “Downturn Lessons.” They’ll not only save you a lot of heartache when the weather changes, but you’ll be in a much better position to make money at a time when nearly everyone else is losing it.

So let me share them with you…

Tags: trading strategy

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