Trading a split government — From McDonald’s to millions — Profiting from market chaos

Willie Mandrell

Summary List Placement

Dear Readers,

Heading into last week’s US elections, the bull case for stocks seemed to be “Blue Wave or bust.” The thinking there was that a fully Democrat-run government would quickly usher in a big chunk of much-needed stimulus and send risk assets soaring.

But then, as the results started came in — and a Republican-controlled Senate crystalized as the most likely outcome — a sharp shift occurred. Suddenly a divided government was viewed as the best possible outcome for markets.

The speed at which Wall Street talked itself into its new reality was astounding. Bolstered by their new positive rationale, stocks soared in the election’s immediate aftermath.

But under the market’s surface, the shift wasn’t so simple. Although most investors remained directionally bullish, they rotated out of certain trades in favor of other, more appealing ones. It ultimately amounted to a reshuffling of market dynamics — the type of shifting sands that wise investors can see and capitalize on.

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Right off the bat, the Investing team at Business Insider interviewed three veteran investors to figure out how to build a resilient long-term portfolio designed to thrive in a gridlocked government. We also heard from a team of Wells Fargo experts how to best play the stock, bond, and commodity markets, as well as taxes.

On the subject of a divided government, an advisor at the world’s largest wealth manager broke down why a Biden win and a split Congress is the best long-term outcome for markets. The investment chief at Raymond James took it a step further and detailed four sectors poised to thrive no matter what under such a scenario.

And for those simply looking to trade short-term market volatility and protect their portfolios in the long term, we spoke to a UBS investment chief for the best approach there.

For more, see below Business Insider’s best Investing stories of the week, which include a wide array of additional recommendations, strategies, and tips for navigating uncertainty.

Thanks for reading!

— Joe

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From flipping burgers at McDonald’s to a self-made multimillionaire

Willie Mandrell, the owner of The Mandrell Co. and founder of Wealth Builder Nation, learned the art of real-estate investing from his grandmother. After she turned a series of initial multifamily purchases into a real-estate empire, Willie did the same.

To come up with cash for his first down payment, Mandrell worked a series of odd jobs, including stints at Outback Steakhouse, McDonald’s, and Marriott. He now oversees 40 units in Boston.

Read the full story here:

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Source:: Business Insider


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