Hi there,
Your theory on volatility returning near the elections and COVID-19 is one that many analysts share. The problem is that we don't know 100% if this will happen or not. However, one option is to build a portfolio with that possibility in mind and taking into account what happened this past March.
In the first economic shutdown as a result of COVID-19, Dollarama was deemed an essential service. As such, its share price fared better than most. Similarily, Shopify did quite well as there was a big shift to eCommerce. One could assume that if we see more shutdowns, both these companies could benefit again.
On the flip side retail (GOOS) and financial (IFC) struggled. By the same logic as above, one could assume they would again. Worth noting however, that GOOS is entering a period of season strength which may be a tailwind for the company. Furthermore, IFC navigated the pandemic well as it paid out less in claims.
In either case, if an investor is worried about the short-term fluctuations of the market then the best course of action is to average into positions. This means taking 1/2 or 1/3 of a position now, and waiting to see how things play out before topping up your position.
As we are long term investors, we are also not fans of timing the market in general. It has proven to be a fools game time and time again. If we see good value today, we will buy and as mentioned, average into positions.
Hope that helps!
Mat