Skip to main content

As the presidential race heats up and investors try to decide what companies could benefit the most and which ones could be adversely affected by a Hillary Clinton or Donald Trump presidency, one thing remains clear: whoever wins the election will likely have to deal with a host of issues.

"Whoever the next president is, they will likely preside over another global financial crisis, possibly of even more unprecedented proportions... We just don't know what will happen when the easy money turns off," said David Callaway CEO at TheStreet last week at the 35th annual MoneyShow San Francisco, an investing conference.

In a presentation entitled "The Role of Global Markets in Your Portfolio in a Post-Obama World" Callaway, who took the helm as CEO at TheStreet at the beginning of July, also provided stocks that would be positively affected by the presidential election candidates.

"At The Street, we tried to construct equity portfolios for either a Clinton or Trump presidency, in hopes of preparing investors for one of these scenario," Callaway said during the presentation. "None of these prepare us for another black swan.....but the good news that as investors we can expect to be better informed than ever before."

If Clinton is elected, Callaway noted that HCA Holdings Inc. (HCA) - Get HCA Healthcare Inc Report , Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. Report and L-3 Communications (LLL) - Get JX Luxventure Limited Report could stand to move rapidly. Clinton has pledged to defend the Affordable Care Act, which passed under President Barack Obama, a move HCA could stand to benefit from. As for Goldman? Clinton was paid to give speeches to the company three times during a two month period. L-3 Communications, a surveillance company, will likely benefit from Clinton's pledges to have increased scrutiny and intelligence measures.

Meanwhile, if Trump wins the election, Cemex (CX) - Get CEMEX SAB de CV Report and Corrections Corp. of America (CXW) - Get CoreCivic, Inc. Report would likely be big movers. Cemex could do well under a Trump presidency thanks to his promise to build a wall between the United States and Mexico. Meanwhile, Corrections Corp. would likely falter under a Clinton presidency after the candidate made comments about shutting down private prisons last week.

Meanwhile, Jack Mohr, Director of Research of Jim Cramer's Action Alerts PLUS portfolio spoke at two sessions during the conference. One called "Investing Jim Cramer's Money: Mistakes, Success and Humility" and another named "Companies First, Stocks Second: How to Invest."

According to Mohr, the most successful investment strategy is achieved "over time, not every time". He stressed the importance of discipline and patience amidst a market cluttered by noise.

Separately, Mohr also discussed having conviction as an investor and believing in the stocks you invest in. He discussed his three favorite companies which also trade at reasonable valuations: NXP Semiconductors (NXP) - Get Nuveen Select Tax-Free Income Portfolio Report , Cisco Systems (CSCO) - Get Cisco Systems, Inc. Report and Panera Bread (PNRA) , each of which shares common overarching themes yet are capable of unlocking tremendous value over the long-term. In simple terms, the companies Mohr views as "Core Holdings" have sound, transparent management teams, unique value propositions, sustainable competitive advantages, and secular tailwinds while possessing high return on equity, free cash flow generation, strong margins and low leverage.

NXP, is an under the radar chip company which has quietly grown into the leader in payments (both mobile and plastic) and autos, where it is the undisputed leader in security and autonomous driving.  Its legacy leadership in payments (it created the technologies behind Apple's (AAPL) - Get Apple Inc. Report Apple Pay and embedded credit card chips which facilitate secure, contactless transactions) has been supplemented by its #1 position in autos.

Apple, as well as NPX, Cisco and Panera are holdings in Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL, NXPI, PNRA or CSCO? Learn more now.

Cisco, meanwhile, has made a push from a legacy hardware business to a software-as-a-service based model to deliver growth at high margins across its strategically important businesses while shedding costs across its legacy lower-margin, low-growth businesses.

Panera is a "tech company which falls under a retail veil, as its Panera 2.0 technological initiatives has paid off in spades, driving increased traffic, higher average transaction value and enhanced operational efficiencies. Panera's growth trajectory defies the deceleration seen across many restaurant chains, which in recent months have struggled to elicit consumer demand. Recent checks indicate that PNRA has significant appeal and over-indexes with millennials, providing a long tail for the stock's push higher.

The Winklevoss twins also presented at the conference on a new digital currency. Cameron Winklevoss presented on Filechain, what he says is the next crypto-currency.

Other speakers included Bob Ackerman of Allegis Capital, Scott Connor of TD Ameritrade (AMTD) - Get TD Ameritrade Holding Corporation Report and Jack Ablin of BMO Private Bank.

This article was written by a staff member of TheStreet.

TheStreet Recommends