Investing Money In A Post-Pandemic Biden Era

We face a tough COVID-19 winter as supply chain bottlenecks slow vaccine rollouts, urban centers remain virtual ghost towns and the disaffected and jobless express outrage with demonstrations and dumpster fires.

Investors should stand steady. President-elect Joe Biden won’t turn America into France any more than Donald Trump could resurrect Midwestern manufacturing to Bavaria’s industrial stature.

A new Congress and president, I predict, will reckon with the plight of 5 million rendered permanently unemployed by COVID-19 with meaningful relief and flexibility for job retraining. As work from home institutionalizes, America’s cities will spread, become less congested and more livable in the bargain.

Wall Street narcissism embraces Democrats and socialists. The Big Apple’s two most prominent ambassadors to Washington are Sen. Chuck Schumer and Rep. Alexandria Ocasio-Cortez, but it fears the party of the suburban feminist might actually put its platform into action.

CNBC reported two-thirds of chief investment officers and portfolio managers it polled predicted the Biden presidency would be bad for stocks. Talk about liberal media bias caught red-handed — that cancel culture network was not flogging that sort of news before the election when it might have moved more IRA-investing viewers to pull the lever for Mr. Trump.

If history teaches us anything, near-term forecasts about the economy and stocks are terrible. It is easier to talk about whether piling into equities now will prove prudent 10-years from now than to discuss where stock prices — and your retirement portfolio — will be next year or even four years from now.

Disasters like the financial crisis and COVID-19 can’t be called even a few months in advance but the economy remains resilient and technological progress continues. Despite temporal setbacks, profits keep trending upward with globalization and the creative destruction of startups, bankruptcies and mergers continues.

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Peter Morici is an economist and professor at the Smith School of Business, University of Maryland, and widely published columnist. He is the five time winner of the MarketWatch best forecaster ...

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