It was 1992…
My guts were turning inside out. My clients were losing millions as the market carnage rained down on me.
I hadn’t taken big risks. In fact, I owned some of the safest, most reliable stocks in the world. And we’d had a great run…
But then, the country elected Bill Clinton as president. And his run for the White House created a political firestorm over drug stocks.
You see, one of his major campaign promises was to introduce nationalized healthcare. That meant price caps for all the major drug companies.
Before he even took his first oath of office, the pharmaceutical sector collapsed.
Blue chips like Johnson & Johnson, GlaxoSmithKline, Bristol-Myers Squibb, Pfizer, and Merck were in a freefall leading up to the election. My clients’ portfolios were full of these names.
I spent my days fielding angry calls, begging people not to sell.
Even though I was barely 20, I felt my career was already over. But unlike most people, I had been investing since age 13. And I was a professional money manager by 19.
So I learned a few things over the years… and one of the most important was the power of “Anomaly Windows.”
Elections Create Rare Anomaly Windows
If you’ve been following me over the past two weeks, you’ve probably seen me mention a rare “Anomaly Window” that occurs every four years like clockwork.
An Anomaly Window is when we believe an event or catalyst will massively increase activity in the market… and the increased activity spikes volatility.
And history shows elections cause uncertainty.
Now, the current window is due to the midterm elections. I’ll tell you how in a moment. But first, let me show you how it played out during the 1992 presidential election…
The companies I owned at the time were all blue-chip names. They were still earning money hand over fist. I just had the misfortune of getting hit by the initial bout of volatility we see in the run-up to an election.
I knew if I could convince my clients to hang in there, volatility would shift in our favor again.
And that’s exactly what happened…
Take a look at this chart. It shows the average return of the healthcare giants we mentioned previously, like Johnson & Johnson and Pfizer, throughout the 1992 election.
While shares of these stocks fell ahead of his election, the healthcare sector suddenly shifted after Clinton won.
By the new year, healthcare stocks had clawed back almost all of their losses.
So what does that all mean to you?
Volatility Is Normal During Anomaly Windows
Presidential elections increase uncertainty on Wall Street. We saw that in 1992 with the Clinton campaign’s effect on the drug sector.
We also saw similar uncertainty in 2008, 2012, and 2016 – when the markets again swung wildly in the run-up to the election.
Take the 2016 election, for example.
This time, Hillary Clinton faced off against Donald Trump, who eventually won the election. And both candidates berated and threatened the drug sector during the campaign. That led to a broad decline in share prices.
Two of the most popular biotech exchange-traded funds (ETFs) – the iShares Nasdaq Biotechnology ETF (IBB) and the SPDR S&P Biotech ETF (XBI) – fell 30% and 40%, respectively.
It was a classic Anomaly Window.
After bottoming out during the 2016 election, IBB and XBI quickly recovered their losses and went on to new highs.
I see a similar Anomaly Window playing over the next month.
If we follow the script from elections’ past, I believe you could recapture 30 years’ worth of stock market gains over the next 30 days – all from safe, boring blue-chip stocks.
Let me explain…
Every two years, the U.S. holds midterm elections. They may not be as high profile as presidential elections… but they have huge implications for the nation. That leads to more volatility in the markets.
You can see that in the chart below.
Since 1970, midterm election years have had a median standard deviation of returns of nearly 16%…
This means stocks can seesaw up to 16% in either direction. That’s compared with 13% in non-election years.
Most of that volatility occurs between September and November. That’s why I held a special event on Wednesday to tell everyone the current Anomaly Window is now open.
But this isn’t your normal midterm cycle… It’s what I call a “Super Midterm.”
Why President Trump Will Make this a Super Midterm
On November 8, 2022, all 435 House of Representative seats and 35 Senate seats are up for a vote… with one more Senate seat than usual due to a previously announced retirement.
It’s a single day that can radically reshape the balance of power in the United States… and they create volatility in the market.
But there’s a wildcard this year: Former President Donald Trump.
Will the former president run again? Will they bury him in lawsuits and investigations?
Your guess is as good as mine… but that unknown is why I’m calling this a “Super Midterm.”
Friends, if you know me, you know I hate politics. I have readers on both sides of the aisle. And my goal is to help all of them change their financial lives for the better.
The one thing we can all agree on is that former President Trump is a major wildcard… And if you’re an investor, it creates massive uncertainty.
So regardless of which party wins more seats after the midterms, this Anomaly Window could dramatically move the needle on your wealth.
All from safe, boring blue-chip stocks using a specific type of options strategy.
I’ll tell you more about this strategy in the coming days, but during the last midterm elections in 2018… you could’ve used it to make 900% in 5 days on Chevron… 1,700% in 8 days on Caterpillar… and 1,174% in 30 days on Whirlpool.
Most recently, my team identified an Anomaly Window in July. We pounced on a storm of volatility created by a mix of the Federal Reserve’s aggressive rate hikes and weak corporate earnings.
That led us to pocket gains like 97.9% in 21 days on Bank of America (BAC) and 61.1% in seven days on Microsoft (MSFT).
It would take an average of 7 years to make those gains in the S&P 500. So you can see why these Anomaly Windows can completely change your financial life.
Wall Street has kept these strategies secret for decades…
But last night, I held a free online event called Retirement Recaptured: 30 Years of Wealth in the Next 30 Days, in which I unveiled what it is.
I even gave away my top 3 stocks to play this strategy… absolutely free.
For a limited time, you can watch a free replay of my event right here… you’ll even get the name of those three stocks…
But you need to watch and act soon. As we get closer to the midterms, there will be less time to prepare… and less opportunity to capture 30 years of returns in 30 days.
Let the Game Come to You!