The fear of corrupt government officials has topped the list of American concerns, as revealed by a survey by sociologists at Chapman University. Since 2014, the Chapman University Survey of American Fears has annually canvassed over 1,000 people nationwide on 85 fears, spanning topics from crime to supernatural occurrences. This year’s survey showed that more than 65% of respondents view corrupt government officials as their primary fear. It's not surprising given the pervasive mistrust; Americans worry about undue influence over the government.
Reflecting on personal experiences of fear can enhance our understanding. Many years ago, I was in a car traveling at around 70 mph when a rear tire suddenly came off. The car spun several times before stopping, leaving us facing oncoming traffic. Even without physical injuries, the experience left me with shaky legs—a physical manifestation of fear. This type of fear links us to fear of corrupt governance, albeit manifesting in different ways. The unease surrounding political matters has been amplified; over half of Americans express concern about the upcoming election outcome.
Amid these brewing tensions, investing decisions can also be influenced by fear. The market assesses investor fear through the Volatility Index (VIX), which spikes when market uncertainty grows. Louis Navellier, an investing legend, predicts increased volatility across various asset classes due to election-related fears. Previously, Louis boldly predicted that Joe Biden would not be the Democratic nominee—a forecast that proven correct and demonstrated his insight. As November approaches, he anticipates heightened market volatility.
In a recent discussion on election fear and market volatility, Navellier partnered with Charles Sizemore, CIO at The Freeport Society. This think tank advocates for traditional American values like free markets and free speech. In their service, Freeport Alpha, Sizemore assists members in achieving superior investment returns through strategic approaches. During a presentation, Louis and Charles shared their expectations of market behavior and what it spells for investors.
They emphasized the importance of positioning oneself to benefit from forthcoming changes. "The Day After Summit" was where they provided strategies to leverage election volatility, discussing risks like potential devaluation of the dollar. They warn that many investors are unprepared for these imminent shifts.
Given this climate of increased fear expressed in the Chapman survey, it's crucial for Americans handling investments to brace for possible market fluctuations. With tensions escalating as election day nears, making informed decisions becomes imperative. Get ready for market dynamics that may shift unexpectedly. Enjoy your weekend.
