It’s a tough question, because presidents set agendas but don’t have a free hand in making them, given Congress. That said, there are some broad-stroke portfolio changes you can make to better capitalize on either presidency.
If Clinton is elected, the best move will be investing in tax-free muni bonds, thanks to their relative safety and tax advantages. Another area is insurance stocks. After all, Obamacare isn’t so much socialized medicine but government-mandated insurance coverage. Any government-inspired mess worth fixing (which this is, given the importance of health care) will mean more government money being spent to make the system work. And all things being equal, that money should go to insurers. Finally, you should invest in clean energy if Hillary Clinton becomes president, given the enormous sway environmentalists have with any Democratic administration.
Now, for Trump: You’d think a Trump presidency would mean that the stock market would double from its current levels given his long career in business and plans to lower both individual and corporate taxes. Don’t bet on it. Investors hate deficits, and one of the problems with Trump’s economic plans is that he’s calling for little in the way of budget cuts but then massive spending, particularly on infrastructure, which could lead to bigger deficits and higher interest rates. He’s also looking to renegotiate trade pacts like NAFTA, which has been beneficial to many businesses’ bottom lines. Even so, Trump wants to do away with many of the environmental and business regulations imposed during the Obama years. I’m told that he has particular disdain for the Dodd-Frank Act financial reform law, which would bring a spike to bank stocks.
He’s also vowed to “save” the coal industry. Likewise oil and gas sectors should do fine. Gun manufacturers should do well since Trump has vowed to protect the 2nd Amendment at all costs.
In any event, good luck!
Charles Gasparino is a Senior Correspondent at Fox Business Network and a columnist for Men's Fitness. Follow him on Twitter.