Is It Time to Sell Your Stocks?

Andy Snyder|April 23, 2021

Joe Biden is in charge now.

He wants to raise taxes… print tons of money… make everything free… and send a tough, expensive message to corporate America.

Should we sell our stocks, grab our guns and run for the hills?

That’s the question that’s been loading up our mailbag each week.

Folks are nervous. They’re unsure of what will come next. And they don’t want to risk their hard-earned money to pandering politics.

“The big gains of the Trump era are gone,” one reader wrote this week. “I’m selling.”

Is she right?

Nope.

Sorry.

Which Is It?

First of all, we need to make up our minds.

In one breath, we take shots at a do-nothing Congress that can’t agree on today’s weather… let alone get any real work done.

But in the next breath, we worry about the same folks ganging up to take away all of our money.

Which is it?

We’ll remind you here not to fall for their slick press releases, big campaign promises and their pals who pen the headlines. Biden can make all the promises in the world… but don’t forget that 51 of his colleagues need to sign the check.

But there’s an even better answer to the question above… a far less political answer.

To decide whether yesterday’s market is any better or worse than today’s market, we need to know what’s different.

What’s changed?

The bulls will like our answer.

Free Money!

Without a doubt, the biggest driver of asset appreciation – not just during the Trump days, but for the past 13 years – is dirt-cheap money.

Everywhere we look, the answer to why prices are rising… leads to ultra-low interest rates.

Lumber prices are soaring… because it’s never been cheaper to finance a new home or a new addition to it.

The M1 money supply is through the roof… because savvy folks don’t want to lock up their money in a CD or Treasury that pays nothing. Hard cash pays just the same.

Stock prices are at record highs… because companies are using virtually free money to expand and, our favorite moneymaker, buy back their own shares.

Until this trend changes… the frenzy won’t slow.

Until the Fed finds a reason to boost interest rates, stocks will continue to climb.

And right now, Jay Powell tells us we’re at least two years away from such a move… and that’s if times stay good.

You know our take on things – interest rates are dead, and the Dow will race to 100K before the plug is pulled.

A Better Strategy Than Worry

But here’s the great thing about all of this.

It’s what we’ve been telling our Manward Letter readers.

There’s not only a simple way to tell when the frenzy will stop… but also a simple answer to what you should do with your money when it does.

We built our Modern Asset Portfolio to hinge on interest rates. Unlike traditional portfolios that are 100% blind to the most important force in the market, our portfolio ebbs and flows with interest rates.

When money is free like it is now, we’re all-in on buyback stocks, cryptocurrencies and deflation stocks… today’s leaderboard.

And as rates rise, we won’t panic and sell. We won’t blame Biden or whoever comes next.

Nah, we’ll adjust accordingly and continue to win. In fact, we just devoted an entire issue focused on what we’ll do when interest rates start to climb.

We’re prepared.

We won’t panic when it happens. We’ll be relieved to know we already have an ideal allocation model on the shelf, ready to put into action.

Don’t blame Biden. Don’t blame Trump.

It gives them too much power. It feeds their egos.

Ignore them.

The real forces within the market have not changed. Don’t change your strategy until they do.