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As investors brace for market (^DJI,^GSPC, ^IXIC) volatility caused by the US presidential election, especially in the case that the final outcome is delayed, Mahoney Asset Management CEO Ken Mahoney joins Catalysts Hosts Seana Smith and Madison Mills to discuss how retail investors should be thinking about playing election volatility.
Mahoney tells retail investors, "Don't get involved in this. You know there's a lot of emotion, and I know it's easy for me to say that, but the last thing you want to do is get whipsawed out of your position ... Our Founding Fathers kind of figured this out, that we have a balance of power and after this election, we're still going to have a balance of power." He adds there are "so many tailwinds," including the Federal Reserve meeting on Thursday, Big Tech companies' artificial intelligence (AI) spending, and strong earnings. "You have a lot of bears [that have] been on the sidelines. They're going to have to commit capital toward the end of the year. Otherwise, the index is going to be way ahead of them. So again, I just say that sometimes we lose sight. We have to come back [and] see where we are, and there's a really strong tailwind despite who wins."
He highlights, "Our favorites are still the market leaders" like Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN). "That's the way we've been playing this right now is some of your best stocks you like with the added volatility. Make volatility your friend, not your foe. And by doing that is actually try to buy some stock. Your favorite stocks below the market which is trading right now."
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
This post was written by Naomi Buchanan.