A shrewd manager surrounds himself with smart people. As editorial director at Investing Daily, I’m privileged to work with some of the best brains in the business.

Which brings me to my colleague Nathan Slaughter [pictured], chief investment strategist of Takeover Trader and High-Yield Investing.

With the world abuzz about the November 3 election and the coronavirus pandemic, now’s a good time to get timeless advice from a Wall Street “wise man” like Nathan. My questions are in bold.

Discuss the current wave of merger and acquisition (M&A) activity. M&As stalled when the pandemic first became apparent earlier this year, but now deal-making seems to be on the upswing.

Well, you can understand why takeover talk was sidelined for a while. There were bigger priorities. Given the economic uncertainty, boardrooms weren’t even comfortable releasing their own internal earnings guidance, let alone sinking billions of dollars into outside businesses.

But we’ve seen a swift recovery since then. After plunging during the lockdown, GDP has been roaring back, surging 33.1% last quarter. That’s the sharpest increase in U.S. history. That pace, aided by stimulus checks and easy quarter-over-quarter comparisons, will surely moderate.

Still, we’ve seen a powerful “V” shaped reversal in both consumer and business spending. And while new infections remain alarmingly high, each day brings us closer to a potential vaccine. At the very least, cash flow visibility has improved markedly and dealmakers are growing more confident.

The prospect of tax and regulatory changes has also hastened the consummation of some deals. Whatever the reason, buyers that were once gun shy are now pulling the trigger.

Case in point: Gilead (NSDQ: GILD) recently extended a $21 billion offer, at $88 per share, for Immunomedics. The target stock, which closed at $42 the prior day, doubled overnight.

And just last week, Dunkin’ Brands Group (NSDQ: DNKN) shareholders watched their stock surge into triple-digit territory thanks to an $8.8 billion offer from privately owned Inspire Brands. If the deal goes through, the popular coffee and donut vendor will join other restaurant chains such as Arby’s and Sonic.

We’re witnessing a lot of political volatility because of the November 3 election and many investors are nervous. What’s your advice?

Tune out the white noise and stick to your long-term goals. Ask yourself two overriding questions.

First, what are my ultimate goals? You don’t start a trip without a destination in mind. Are you saving for college? Retirement? A dream vacation? All three? If so, calculate how much you’ll need and don’t forget about inflation. Then you’ll have a realistic idea of how much to set aside and what returns you need to reach your goals.

Watch This Video: Your Election Survival Guide

Secondly, what is my age? A retiree no longer drawing a salary and living off his or her nest egg can’t afford to take the same chances as a recent college graduate. The old rule of thumb for equity exposure is 100 minus your age.

Accordingly, a 40-year-old investor might keep 60% of his portfolio in stocks, versus just 30% for a 70-year-old. This is a simple, but not unreasonable guideline for many people. The point is to build wealth during the early years and then protect it during the later years.

The overvalued stock market is poised for a correction, but you’ve actually written that a “breather” would be a good thing. Please explain.

[Laughs] Why on earth would I want stocks to take a breather? Cooling down the overheated market would put some over-extended stocks back in our grasp, for starters. Nobody (except short-sellers) really loves to see stocks tumble.

Still, the occasional correction is sometimes necessary to keep prices in check and prevent bubbles. Bargain hunters should welcome corrections.

Of course, when gravity reasserts itself, it can also bring highfliers back down to Earth. And that’s good news if you’re not yet an owner of an inherently strong stock.

You’ve often discussed “hidden high yield stocks.” What do you mean by that?

For hidden high yielders, the true payout is much higher because they pay supplemental dividends that go unreported each quarter. But this isn’t some secret way of transferring cash to a select group of well-connected insiders.

These extra payments are dished out openly and uniformly to all shareholders. They’re considered “special dividends.” As such, these distributions aren’t reflected in the yields you see quoted on popular financial websites.

Read This Story: Dividend Stocks: “Boring” But Bountiful

Trust me, the cash is just as green and spends just the same as any other dividend. And these special payments typically come in much bigger denominations, often 10-to-20 times larger than the firm’s regular quarterly dividend.

There’s no special trick or complicated system to capturing these dividends. You just have to know where to look.

Editor’s Note: For our list of the best available high-yielding stocks, click here for a special report.

John Persinos is the editorial director of Investing Daily. Send your questions or comments to mailbag@investingdaily.com. To subscribe to John’s video channel, follow this link.