Where I’m Donating My $1,000
After last week’s trouncing in New York, Donald Trump appears closer to winning the Republican nomination for president – though it’s hardly a done deal.
You’ll recall that a while back, I predicted that if The Donald wins the White House, the market will sell off – hard.
My reasoning: The market hates uncertainty, and I don’t think anyone can state what a Trump presidency would look like. You can love or hate Hillary, but Wall Street pretty much knows what to expect of her. If Trump wins, anything goes. He’s a complete wild card, and the market doesn’t deal well with that.
Long term, I said everything will be fine. Over the years, the market goes up.
No matter who is president, no matter what boneheaded wars we get into, no matter what scandals emerge… stocks go higher over the long term.
So if Trump wins, my long-term investing strategy won’t change one bit.
The short term is another story. I said that if Trump wins, I expect the market to fall by at least 30% within a year.
That statement generated hundreds of angry comments and emails – most of them just calling me names.
There was one email that caught my attention though. The reader suggested that if I believed so strongly that a Trump victory would tank the market, I should put my money where my mouth is.
I said I would bet Wealthy Retirement readers that the market would fall at least 30% between Election Day and December 31, 2017, if Trump is elected president. I asked that, if I’m right, readers donate an amount of their choosing to the Wounded Warrior Project.
I’ve since learned the Wounded Warrior Project has undergone a scandal, so if I win the bet, we’ll take another look at the organization next year. If it’s not a suitable charity, we’ll find one that does the same kind of work.
But I won’t have to look hard.
The other part of the bet is what happens if I lose.
In that case, I said I’d donate $1,000 of my own money to a charity of Wealthy Retirement readers’ choosing. I took suggestions in the comments section and then, two weeks ago, put up a poll for the five most suggested or “liked” charities.
We had more than 1,000 votes cast, and the overwhelming winner was Disabled American Veterans, with 64% of the vote. So that’s who I’ll donate to if I’m wrong – though I don’t expect to be.
Whoever wins the bet, some very worthy veterans will get some needed help.
That’s something we can all feel good about no matter how the market performs under a Trump presidency.
P.S. Did you know Marc’s best-selling book is now an award winner? Get Rich With Dividends was named a 2016 Book of the Year by the Institute for Financial Literacy. Check it out to find out why Alexander Green called it “the best book for retirement planning… ever.”