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Buying 2 “Defensive”
Mutual Funds – Joseph Shaefer

October is historically a so-so month with a slight downside tilt, notes Joseph Shaefer, CIO, Stanford Wealth Management and editor of The Investor’s Edge, a contrarian investment advisory newsletter.

However, that has often led to an explosive move up in November, observes Shaefer. “This year? It depends on how quickly we finish – and everyone accepts, if grudgingly – the results as being accurate.

I am expecting volatility in October and a shaky market in Nov IF we have no clear winner, or IF our current president contests because of mail-ins, or IF it goes to the Supreme Court to decide, or IF crazies on either or both sides riot. That's a lot of "Ifs."

I am hoping for the best but I would rather lose a small opportunity and gain instead more certainty and less sleepless nights just in case. For that reason I am buying 2 "defensive" mutual funds, both of which have actually beaten the S&P even in an up period.

They are the RiverPark Long/Short Opportunity Fund (RLSFX) and the Alger Dynamic Opportunities Fund (SPEDX).

If we have a good clean uncontested election, either with four more years of the current administration or a different one, then I expect the market to roar ahead. Remember, the market is not political – it just hates uncertainty.

In most years, November, December and January are excellent months to be long. Large caps typically dominate in November and December, while small caps have their best month of the year in January.”

Editor’s Note: Joseph Shaefer is the CEO and Chief Investment Officer of Stanford Wealth Management a risk manager and a wealth manager. Mr. Shaefer is also editor of The Investor’s Edge. Readers can view the results of 20 years of investing success success in his Growth and Value portfolio as well as his current thinking at Seeking Alpha.

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