The U.S. midterm election results are in, and three rare things have happened.
First, the Democrats won sweeping, almost overwhelming victories in both chambers. In previous midterms, the president’s party would lose one chamber, but this time the Republicans, Trump’s party, lost almost everything.
Second, some staunch Trump supporters switched sides this time. Even Texas, a longtime “red state,” went to the Democrats.
Third, Trump surprisingly didn’t make a fuss. In the afternoon, he told reporters he would accept the results and work well with the Democrats.
The afternoon rebound in overseas markets was largely due to that third point. At first, people had priced in the possibility that Trump would throw a tantrum and refuse to accept the results. But this time, he accepted them calmly.
In fact, midterm elections are essentially part of the U.S. political system. Whoever takes office, the country’s basic direction won’t change.
That includes rumors circulating earlier that if the Democrats took power, they would restrict AI development. That’s nonsense.
Developing AI is a bipartisan consensus in the U.S.; whoever comes to power will pursue it. What the Democrats want is to limit the pressure that data centers put on local residents by driving up electricity bills. But if those centers create jobs, they’ll continue to support them all the same.
Still, this midterm election showed just how much resentment Americans feel toward Trump. Even some die-hard fans switched sides. Looking back, it’s hard to find anyone who isn’t resentful of the current inflationary pressure—especially since high oil prices caused by the war with Iran have seriously affected Americans’ daily lives.
Even though prices have surged, many people will probably still be down this week. I saw someone joke, “If only I still had my principal.” That really is a basic point.
But there’s another basic point that few people explain.
Even if you’ve lost half your principal, the companies you once believed in may already be down 70% or more.
Compared with the peak, that remaining half of your principal can buy 60% more shares. In other words, the stock only needs to rise 60% of the way back to its former price for you to break even. If it recovers 80% of the way, you’ll make a decent profit. It’s just math, so there’s no need to be blindly pessimistic.
Investing is a game that only a minority win, and it really does take a very long time. Two or three years may only be the beginning. Most people think long-term when prices are rising, but when they fall, they just want to break even and quit. And so they waste year after year.
$TSMB
First, the Democrats won sweeping, almost overwhelming victories in both chambers. In previous midterms, the president’s party would lose one chamber, but this time the Republicans, Trump’s party, lost almost everything.
Second, some staunch Trump supporters switched sides this time. Even Texas, a longtime “red state,” went to the Democrats.
Third, Trump surprisingly didn’t make a fuss. In the afternoon, he told reporters he would accept the results and work well with the Democrats.
The afternoon rebound in overseas markets was largely due to that third point. At first, people had priced in the possibility that Trump would throw a tantrum and refuse to accept the results. But this time, he accepted them calmly.
In fact, midterm elections are essentially part of the U.S. political system. Whoever takes office, the country’s basic direction won’t change.
That includes rumors circulating earlier that if the Democrats took power, they would restrict AI development. That’s nonsense.
Developing AI is a bipartisan consensus in the U.S.; whoever comes to power will pursue it. What the Democrats want is to limit the pressure that data centers put on local residents by driving up electricity bills. But if those centers create jobs, they’ll continue to support them all the same.
Still, this midterm election showed just how much resentment Americans feel toward Trump. Even some die-hard fans switched sides. Looking back, it’s hard to find anyone who isn’t resentful of the current inflationary pressure—especially since high oil prices caused by the war with Iran have seriously affected Americans’ daily lives.
Even though prices have surged, many people will probably still be down this week. I saw someone joke, “If only I still had my principal.” That really is a basic point.
But there’s another basic point that few people explain.
Even if you’ve lost half your principal, the companies you once believed in may already be down 70% or more.
Compared with the peak, that remaining half of your principal can buy 60% more shares. In other words, the stock only needs to rise 60% of the way back to its former price for you to break even. If it recovers 80% of the way, you’ll make a decent profit. It’s just math, so there’s no need to be blindly pessimistic.
Investing is a game that only a minority win, and it really does take a very long time. Two or three years may only be the beginning. Most people think long-term when prices are rising, but when they fall, they just want to break even and quit. And so they waste year after year.
$TSMB