An Investment Coach Made $20K From the Election — 3 Similar Ways To Make Money
Written by
Choncé Maddox
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
While many people are still processing the results of this year’s presidential election, some are also considering how they can make the most of their investments and continue to secure their financial future, especially amid increased living costs and inflation.
Last month, Ange Matthews, an investing educator and founder of The Happy Investor Method, shared on her Instagram page that she earned $20,210 in investment returns the day after the election. By strategically investing in sectors like tech, finance and cryptocurrency, Matthews capitalized on the volatility of election season to grow her wealth.
By sharing her success, Matthews hopes to empower others. “For me, this was really important to share with you because everyday people can learn how to take advantage of elections and how it can impact them personally,” she explained on Instagram.
If you’re wondering how realistic something like these results may be for you, you’re not alone. Here’s how elections can create financial opportunities and three ways you can capitalize on market trends during election cycles and other major events.
Also see five stocks to invest in ahead of Inauguration Day, according to experts.
Understanding Market Volatility During Elections
Elections often send ripples through financial markets as investors react to uncertainty and potential policy changes. Even before results are finalized, the stock market can experience sharp swings based on projections and public opinion.
Key sectors, like energy, healthcare and defense, can especially be impacted by election outcomes because they’re closely tied to government policy. For example, a candidate favoring renewable energy might boost clean energy stocks, while another focused on increasing military spending could positively affect defense contractors.
“Over time, we have made money through the stock market through administrations, regardless of the administration, after the election,” Matthews said on Instagram. “People thought that … Trump winning signaled that we were in for a prosperous stock market.” As a result, a lot of stocks went up. As reported by ABC News, all three major stock indexes — the S&P 500, the Dow and the Nasdaq — saw record finishes following the election.
While individual elections and events matter, the long-term potential of investing often outweighs short-term political changes. But staying informed about these trends is important for spotting opportunities.
How To Capitalize on Major Events
As Matthews’ success shows, elections can be an ideal time to look at your financial strategy. However, this article is for educational purposes only and not investment advice. Always do your own research or consult a financial advisor before making investment decisions.
Here are some clever ideas to consider to capitalize on elections and other events.
Short-Term Trading Strategies
Market swings are common during elections, creating opportunities for short-term traders to profit from volatility. By carefully monitoring news and market trends, investors can identify dips or spikes and trade accordingly.
For example, during this election cycle, Matthews capitalized on tech stocks, financial stocks and cryptocurrency, all of which saw significant fluctuations as policies affecting innovation and regulation were debated. Bitcoin, for example, reacted positively to the election and eventually hit the long-awaited $100,000 mark.
While no one can accurately predict or time the market, it pays to be informed and start investing early and often.
Diversification and Risk Management
Balancing high-risk, high-reward investments with safer options is essential during volatile times. While Matthews found success with specific high-growth stocks, her holdings were also diversified in different sectors.
Creating a well-rounded portfolio that includes stocks, bonds, exchange-traded funds (ETFs) and other assets helps minimize losses during market downturns and ensures stability over the long term.
Educating Yourself and Others
Finally, one of the best ways to capitalize on elections is to learn from experienced investors and share that knowledge. Matthews, for example, uses her platform to educate others about market opportunities.
Consider reading books, joining online investment communities, or attending webinars and training classes to sharpen your skills and stay ahead of trends.
Opportunities for Financial Growth
Elections can be an interesting time, but they can also create opportunities for financial growth. By understanding market volatility and leveraging strategies like sector-specific investments and diversification, investors can position themselves to make money during election cycles.
As Matthews’ story highlights, many people saw portfolio gains following the election simply because they had been investing consistently beforehand.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
