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The Day After the Election

As the U.S. election approaches, we know that whatever happens the day after the election, we can say with 100% certainty, that people will continue to eat, both at home and at restaurants, millennials will yearn for brands that match their personal preferences, Americans will continue to live, work, and shop online and the secular movement to watch and consume content across multiple devices will continue. The bottom line is that the digitization of everything will continue its relentless advance, regardless of politics. No matter what happens on election day, investors must focus on the certainties that do exist, identify companies that operate in these environments, which improve your odds of success and then invest with a long term, data driven and mindset that reduces the negative impact of emotions.

In this week’s market update, are going to provide a quick COVID-19 update, what it means for businesses and how we expect the current trajectory of virus cases to impact client portfolios. We also want to take a look under the hood of the market to understand how well the market is prepared for the election and then gauge the health of the stock market rally by measuring long and short term breadth measures. Lastly, we will look investor positioning to gauge realized sentiment, along with health check of the economy and the credit markets.

As of October 13th, the LPAM Tactical Opportunity has advanced +90.32% after fees, vs. a rise of +8.70% for the S&P 500 Price Index. Since inception (Jan 1, 2017), the LPAM Tactical Opportunity has advanced +210.13% after fees vs. an advance of +56.86 for the S&P 500 over the same time period.