Now that the primary election season is over, it is time to revisit the funds that would do well under the presumptive Republican and Democratic party nominees, and add more funds that could deliver for investors under new political possibilities.
Back in early February, I called the Republican race for Arizona Sen. John McCain and picked
funds that could do well under his administration.
My choices under a McCain victory in November were the, B+ rated
Fidelity Select Defense and Aerospace Fund(FSDAX Quote - Cramer on FSDAX - Stock Picks), C- rated
PowerShares Aerospace & Defense Fund(PPA Quote - Cramer on PPA - Stock Picks), and the D- rated
SPDR S&P Biotech ETF(XBI Quote - Cramer on XBI - Stock Picks).
McCain vs. Obama: Who's Better for the Economy? |
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On the Democratic Party side, Illinois Sen. Barack Obama was able to ride the momentum I cited in my February
article to the finish line.
The funds selected to benefit in an Obama presidential win, included the C rated
PowerShares Wilderhill Clean Energy Portfolio(PBW Quote - Cramer on PBW - Stock Picks) and the E rated
PowerShares Dynamic Building & Construction Fund(PKB Quote - Cramer on PKB - Stock Picks).
On the other hand, I predicted the companies held by the D rated
SPDR Pharmaceuticals ETF(XPH Quote - Cramer on XPH - Stock Picks) might do poorly under Obama as could the D rated
iShares Dow Jones US Insurance Index Fund(IAK Quote - Cramer on IAK - Stock Picks).
As expected with Obama, the three month returns of 2.79% for pharmaceuticals ETF and negative 0.47% for insurance ETF lagged the 5.77% return from the S&P 500 Index.
If Obama selects Senator Hillary Clinton as his vice-presidential running-mate and adopts her, more industry friendly, healthcare plan, the iShares Dow Jones US Insurance Index Fund would flip back into the potential winner column as would the C rated
Consumer Discretionary Select Sector SPDR Fund(XLY Quote - Cramer on XLY - Stock Picks), which also lagged at 3.29% for the same period.
Over the three months ending May 31, the McCain picks gained 3.99% from Fidelity Defense, 7.36% from PowerShares Defense, and 11.66% from the Biotech SPDR. For the same period, the bullish Obama picks grew 8.35% in PowerShares Clean Energy and 8.64% in PowerShares Building & Construction.
Kevin Baker
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