Vote Like Your Money Depends on It

Nine months ago, when I wrote If McCain Wins, So Could These Funds, Sen. John McCain was locking up the Republican Party nomination. Since then, the Dow Jones Industrial Average has lost 22% of its value while the Nasdaq 100 has tumbled 24.5%.

Two of my three McCain fund picks did worse than the market, with Fidelity Select Defense and Aerospace (FSDAX Quote) off 31%, and PowerShares Aerospace & Defense (PPA Quote) down 30.59%. A surprise victory by McCain could put stock holdings of Honeywell (HON Quote), minus 46.6%; Lockheed Martin (LMT Quote), down 18.7%; Boeing (BA Quote), a decline of 33.2%; and General Dynamics (GD Quote), a drop of 26.7%, back in favor.

The one McCain pick to outperform the market, falling just 1.81% since early February, was the SPDR S&P Biotech ETF (XBI Quote). Back on Feb. 8, McCain had yet to select a running mate. Former Pennsylvania Gov. Tom Ridge recently explained that McCain could be winning Pennsylvania if McCain had selected him. ...