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Portfolio Strategy For 2016 Presidential Election

Published 09/30/2016, 02:36 AM
Updated 07/09/2023, 06:31 AM

If the first debate was a preview of what's to come, the last month of the 2016 Presidential election will be great theater. Entertaining as it may be, money is at stake for investors and they need to be prepared for a victory from either candidate.

The outcome of the election will affect the country's policies for the next four or perhaps eight years. These policies will dictate how money flows in and out of projects and investments, which can affect a portfolio.

How can you predict the outcome of a frustrated electorate?

You can't!!! The Brexit proved that back in June when the U.K. shockingly voted to leave the EU. Big money investors are now nervous that economic angst could fuel an unpredictable outcome in the U.S. election.

Rather than predicting what might happen, investors will be better off waiting for results, then acting after a winner is announced. The key to a successful approach is preparing a watch list of stocks for the days after the election. This list should allow an investor to ready themselves for both scenarios.

In the rest of the article I will cover these topics so you can take advantage of a victory from either candidate:

1) Who does the market favor?
2) Sector outlook: Trump
3) Sector outlook: Clinton
4) How to Capitalize


Who Does the Market Favor?

One thing that the stock market hates is uncertainty and markets can tend to panic when the future isn't easy to predict. Because Trump is unpredictable, markets are fearful of a Trump presidency.

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Investors prefer Clinton because she is viewed as a candidate that will extend Obama's policies. There won't be radical change, but rather the continuation of the status quo.

Simple answer: Investors favor and would reward markets with a Clinton victory.

More . . .


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Limited-Time Opportunity to Target Election Profits

Donald Trump and Hillary Clinton have very different plans for the country. If you understand those plans, you know where the money is about to start flowing in advance. It's what investors' dreams are made of.

Zacks' 2016 Election Report features 6 picks to buy if Trump wins and 6 if Clinton wins. These tickers are practically guaranteed to climb after the election -- and early investments could see the greatest gains.

Opportunity ends midnight Sunday, October 2.

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Sector Outlook: Trump

Infrastructure -- A massive border wall will be built. No matter who pays for it, expect the companies that get the contracts to supply and build the wall to be big winners.

Energy -- Trump will reduce drilling and exploration regulations. If Keystone is approved, expect the energy space to benefit and oil stocks to reverse their recent downward trend.

Financials -- Regulatory relief would help out the banking sectors. A possible dismantling of Dodd-Frank could help big banks thrive again.

Gold -- Fear would be on the rise. Gold and the VIX would likely see a push higher between the election and the inauguration. Investors can profit by buying gold and gold miner ETFs or long VIX ETFs.

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Sector Outlook: Clinton

Infrastructure -- Clinton has proposed $275 billion for repairing roads, bridges, public transport and high speed internet. Expect Clinton to spend more on widespread infrastructure, increasing the demand for construction.

Energy/Solar -- Clinton will make a move off of fossil fuels. Expect more regulations for big oil and subsidies for alternative energy. Solar stocks will be the main beneficiary of a Clinton presidency as she pledges to install 500 million solar panels if elected.

Heathcare/Biotech -- Obamacare will be extended, which will be good for hospital stocks. However, drug companies will be under the radar over prices hikes. Expect investors to shy away from biotech.


How to Capitalize

As you can see, both Clinton and Trump have explained how they plan to tackle key economic issues, including tax policy, infrastructure and energy. Their plans will shift trillions of dollars around the economy.

I've created a special report to help you capture the huge gains that these could produce, starting immediately after the votes are counted.

The 2016 Election Report offers my best advice for trading this election for maximum profits. It reveals which tickers are most likely to skyrocket, based on each candidate's policies.

You'll discover 6 picks if Clinton wins, 6 if Trump wins.

Just before the 2012 presidential election, we released a similar report. Stocks we recommended if Obama won absolutely crushed the market, with gains of +60%, +67%, +185% in the months after the election. This year's returns could be even bigger.

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The 2016 Election Report is absolutely free for Weekend Wisdom readers who look into our Zacks Ultimate program no later than midnight on Sunday, October 2.

If you're interested, now is the time to get started.

Click Here to Claim Your Copy of Zacks 2016 Election Report >>

Wishing you great financial success,

Jeremy

Jeremy Mullin has been a professional trader for the past 12 years with specific experience profiting from patterns set by High-Frequency Traders. He is the editor of the Counterstrike portfolio recommendation service.



Original post

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