 12/30/2020 How to Prepare for the Election of 2021 ✔️ What the new year could bring and why traders could see a major sell-off... ✔️ Politics and stocks — what does the market really want to see?  The election isn't over!
There are still two Senate races in Georgia that haven't been decided. They're in a runoff election … And there's a lot at stake.
That election is already underway. Early voting has been going on for weeks.
Big-name politicians have been campaigning relentlessly in the state. Former President Barack Obama, President Donald Trump, and President-elect Joe Biden all know these two Senate seats hold the future of the country in the balance.
I want you to understand exactly why this election matters, who I think is likely to win, and why the market cares.
Let's start with a quick refresher on how the U.S. federal government works. Sponsored Ad  See how Mark Croock uses penny stock strategies (taught by multi-millionaire trader Tim Sykes) to trade options from home on Tesla, Beyond Meat, and Zoom… Checks and Balances
The president is not a king. Whoever is in office has to work with Congress to pass laws, spend money, and even go to war.
There's a separation of powers. The president, the House of Representatives, and the Senate are elected independently of one another.
For a bill to become law, it must pass through the House and the Senate in the legislative branch. Then it's signed into law or vetoed by the president, who controls the executive branch.
When one party controls all three, they can push a more extreme agenda. A split government keeps things the more steady. For any major legislation to get passed, there must be bipartisan support.
We all know that Joe Biden, a Democrat, won the White House. The Democrats also won control of the House, 222–210. But the Senate has yet to be decided. The Republicans are in the lead and currently hold a 50–48 advantage.
But with two seats still up for grab, the Senate could end up tied 50–50. Who's the tiebreaker when the Senate is tied? The vice president. That will be Biden's running mate, Kamala Harris.
So if the Democrats win both seats, they'll control the House, the Senate, and the White House. Why It's the Republican's Race to Lose
Despite the fact that Biden managed to win the state by a very narrow margin in November, Republicans have historically dominated politics in Georgia.
Traditionally, Republicans show up in larger numbers than Democrats for non-presidential elections. And they only need to win one of the two races.
Remember: the presidential race gets most of the press. The races for Senate and House are usually less exciting, so they get less media coverage. But they're just as important.
Republicans have a weak spot ... President Trump has been claiming the presidential election was rigged and full of fraud.
The Trump campaign has yet to get any significant victory to gain ground on those claims in court. Biden has already begun his transition into office. But still, the claims persist.
Republicans might boycott the election. If enough believe the election has already been decided by a rigged system, they may not show up to vote.
In the days and weeks following November's election, the market was very bullish. It appears that Republicans should maintain control of the Senate.
But now there's some uncertainty... Sponsored Ad FREE OF CHARGE: "Billionaire Trader Exposed…" (See 26 Powerful Lessons on Life & Trading)  The Stock Market Doesn't Like Uncertainty
Democrats and Republicans can't agree on much these days. This means the current state of taxes and laws are unlikely to change if the government is divided.
Markets historically perform better under a dividend government.
The divided government essentially means that nothing is going to change. No change provides stability to the market. That could help the bull run continue.
Nothing is certain right now. The market's pricing in a split government, but if the Democrats win control of the Senate we could have a big sell-off.
No one can say for certain which way the election will go. But every trader's job is to manage the risk. How I'm Planning for the Results
2020 has been a career-making year for me. I've taken millions in profits from the market.*
And I think that 2021 will be chock-full of opportunities. But I'm not willing to take any major risk going into Georgia's runoff election.
I'm moving a large percentage of my account into cash. I'm not willing to risk giving back what I've made this year.
Maybe I'm being too cautious. But it's my decision. I'm willing to sit out a few days in order to protect my account.
If I've learned anything in the past decade, it's that you can't predict the outcome of any election. Sponsored Ad  After making over $6 million trading penny stocks over his career...
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Plan Your Move Now
I've told you how I'm dealing with election risk. My goal was to make you aware of the risk that this election brings. That way you can prepare ahead of time.
But you need to do what's right for you.
You might want to reduce your exposure to the market. The stock market is always an uncertain place. If you're not comfortable holding with this added risk, now is the time to act.
But you might prefer to hold what you've got.
It's a personal decision.
You need to decide what's right for you. But you need to decide with all the facts. Now you know my concerns … Do some deeper digging to figure out what works for you.
The market is at a very high level right now. The election could act as a catalyst for a large sell-off. Be ready for anything.
Here's to democracy,
Paul Scolardi Editor, Swing Trade Millionaires P.S. One of Tim Sykes' best students is using a little known strategy based on his penny stock formula to trade from the comfort of his home in Florida. And he wants to show YOU how he does it.
If you want to see a strategy that has the potential to change the way you trade FOREVER… then you need to see what Mark's up to. But his page is coming down at midnight tomorrow. So this is your last chance to get in. Click here to see more.
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