Portfolio Tune-Up: Five Tips

5. Remember This: There Is a Presidential Election Coming

Sure it is entertaining to watch as Hillary Clinton and Barak Obama sling barbs at each other. Perhaps you enjoy David Letterman make fun of John McCain's age on the Late Show. However, this is no laughing matter. The stock market, individual stock sectors, the economy and job markets will all be impacted by this election.

Now may be the time to be prepared to buy the stocks that will benefit from the election of one of those candidates or sell the stocks that will be hurt by a candidate's election victory. Jeffrey Miller, a colleague and RealMoney contributor has designed a Website called Election Stocks. The site is devoted to helping sort through the economic platforms of each candidate and aid in the development of an investment strategy.

For example, if you think (as I do) that a Democratic victory will put pressure on Wal-Mart (WMT Quote - Cramer on WMT - Stock Picks) to break itself up or unionize its workers, then selling or shorting Wal-Mart, if Clinton or Obama win, would be one investment strategy. However, if you believe that a McCain victory would further bolster defense spending, then perhaps an investment in a defense contractor within the PowerShares Aerospace & Defense ETF (PPA Quote - Cramer on PPA - Stock Picks) would be your strategic move.

Homework Time

Spring is a time of renewal, so look under the hood of your portfolio to make sure that it's firing on as many cylinders as possible. Seek to jettison stocks that no longer make sense and add new ones which will help to nurture your portfolio and grow you returns for the rest of the year.

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