Election-Day Panic: Why Savvy Investors Should Stay Calm

The S&P 500's longest losing trend in 36 years, which ended Friday, suggested that Wall Street had gradually begun to doubt the absolute certainty of a Hillary Clinton election victory, although on Monday that appeared to dissipate and the market rallied.

The nine-day 3.1% decline for the S&P 500 benchmark is probably an ominous signal to those who had been betting that Clinton's winning the election was already a done deal.

Even so, there are concerns that if Hillary wins -- which obviously would help America avoid the controversial "Mexico wall" plans, prevent an aggressive deportation policy, and, in general, avoid an economic meltdown -- there still may be tough problems to deal with in the economy.

While Trump's blunt and virulent rhetoric, confrontational arrogance, personal eccentricities and a "grand economic plan" to restore the nation's former glory may seem unbelievable to many, it's likely that it won't be smooth sailing under a Clinton presidency either.

The stock market's nervousness is indicative of two things:

First, if Hillary becomes president, she may face years of inquiries and blocked nominees -- and not only from the Republican quarter. We've already seen some Democrats expressing their displeasure against Hillary.

Second, the premature arsenal of "threats" toward Clinton is reminiscent of Republican exertions to bewilder Obama at the outset of his presidency.

Some investors are preparing for apocalypse, no matter which direction the ballots go. They're buying gold and seeking refuge in money market funds.

However, these moves may be unnecessary. In fact, the stock market needn't be so jittery. All this panic selling is just overreaction.

Looking at the polls, it's clear that Hillary is still the favorite to win. With markets correcting in the election run-up last week, her win could eventually change the course of the stock market with an immediate relief rally.

Therefore, it's time keep a cool head and adjust your portfolio accordingly.

Expect stocks such as General Electric, JPMorgan Chase, Pfizer, Visa and Walmart -- all part of the Dow Jones Industrial Average -- to gain if Hillary wins.

General Electric is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. See how Cramer rates the stock here. Want to be alerted before Cramer buys or sells GE? Learn more now.

What should you avoid? Steel-related stocks such as U.S. Steel and Steel Dynamics could stand to lose their luster. And stocks in the "Trump Portfolio," such as Geo Group, Cemex, ExxonMobil and Boeing, could take a big hit.

Although it's tempting to panic as America faces last-minute election jitters, investors who stay calm and don't brace for the worst actually may stand to come out ahead.

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A crisis is coming. But I've found seven companies that should continue to prosper no matter what's going on in the economy. Each one of these powerful, yet overlooked companies barely even blink when the market tumbles. And they'll skyrocket when it rebounds. You can pick up all seven for pennies on the dollar right now. Get their names here before it's too late.

The author is an independent contributor who at the time of publication owned none of the stocks mentioned.

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