and Your Money


By determining certain campaign themes as cornerstones, candidates identify particular industries and companies that will benefit after Election Day. Tis year is no different. Instead of the entire market reacting to an election, there is usually a move toward favored companies based upon the expected upcoming policy changes. In other words, sectors and companies “move,” while the market, in general, yawns at elections. Picking the winner of this election may prove to be incredibly difficult, as this is not a standard election.


A Hillary Clinton victory will likely move the market toward her particularly favored themes. Te solar and renewable energy industries could get new life and new money. Many also speculate that infrastructure companies (roads and bridges) and her “old friends” at Goldman Sachs could see significant benefits.


Comparatively, Donald Trump’s policy initiatives create a different list of favorites. His favored companies include those with large profits stored abroad that he would attempt to repatriate. Certain companies dealing with illegal immigration could benefit, as well as coal, oil, and other energy producers in the quest to make America independent of foreign oil.


A few sectors and companies should benefit regardless of who wins. Hospitals appear to benefit in either case, but for different reasons. Clinton would advance women’s health services, while


Trump would drive the Veterans Administration into the private sector for “better” care. Both candidates agree on increased defense spending. After the reductions of the past eight years, a renewed emphasis on defense by either candidate should help companies like Boeing (aircraft manufacturer), General Dynamics (defense contractor), and Lockheed Martin (aeronautic research and designer).


After setting aside those common benefactors of a new president, we get down to who truly wins. If Trump wins, owning Apple (electronics and software), ExxonMobil (oil and gas), and Cemex (building materials) should prove wise. Clinton would likely help Aetna (managed healthcare insurance), SolarCity (solar power), and Goldman Sachs (investment banking).


Elections do have consequences. One consequence is that winners and losers are created among companies and industries. Te reaction of investors is usually immediate in moving money from one to the other. However, the entire market does improve a slight majority of the time (56%)*


in the first year of a new presidency


and even beyond the election year. A honeymoon could be in store for the market, as well as the new president. Choose wisely.


* Source: http://www.schwab.com/insights/stocks/how-do-stocks-perform-during- presidential-election-cycle


ambassadoradvisors.com • 3


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12