The 2020 Presidential Election is finally here. Are you feeling nervous about your portfolio? Or, maybe, you see plenty of investing opportunity.
Either way, you'll want to watch TheStreet's free webinar: 2020 Election: How to Win With Your Wallet.
TheStreet's Katherine Ross hosts and is joined by these all-star experts:
- Jeff Marks, Senior Portfolio Analyst for Action Alerts PLUS, Jim Cramer's member's only club for investors.
- Chris Versace, Real Money Contributor and co-portfolio manager of Trifecta Stocks and Stocks Under $10. Versace is the Chief Investment Officer at Tematica Research.
- Bob Lang, Real Money Contributor and co-portfolio manager of Trifecta Stocks. Lang is also a private trader in equity and options markets and manages separate accounts via Aztec Capital LLC.
- Why cannabis could benefit from a Democratic sweep
- Most watched sectors pre & post election
- Action Alerts Plus' most-asked questions answered
Election 2020: How to Win With Your Wallet
Tip #1: Don't Panic
Yes, the election is scary. And no matter how seasoned you are as an investor, it's good to remember tip #1: DON'T PANIC.
Jeff Marks, Senior Analyst Action Alerts Plus said, "I don't think anyone really needs to make any drastic changes to their portfolio. Trying to predict an outcome is a sucker's game, as we saw after 2016."
If you're nervous and want to thwart volatility keep to your game plan and go for those high quality names that are indifferent to what happens on election night.
Tip #2: Stick to Companies Benefitting From Structural Changes
Chris Versace, Real Money Contributor said, "..consider companies that will benefit from post pandemic structural changes. 5G is a home run idea for the next several quarters at least, if not longer. "
Digital shopping and online grocers are among the areas accelerating change because of the pandemic and companies like Carvana are exploding from the changed behavior.
Tip #3: Don't Predict the Election Results
Bob Lang, Real Money Contributor said, "It's a WASTE OF TIME trying to predict what's going to happen as it relates to your portfolio."
"I think people are overly concerned and overly worried that there's going to be some big swings in the market and that the market's going to take it down. Look, let's face it, the stock market is a discounting mechanism. It looks out six to eight months."
"We're only two weeks out from the election. I think the market has already looked beyond what's happening with the election and is looking at the economy and what's going to happen post pandemic," Lang said.
Tip #4: Biden Win? Consider Stocks Tied to the Outcome
'You know some of the areas that I'd be focusing on would be some of the alternative energy names solar energy, for example, in that arena some electric vehicles. You know I think if the Democrats win. I wouldn't be surprised if we see the Green Deal agenda, get Advanced even further that probably means. On the other hand, that some of the more traditional energy sources coal companies and the like for example, we may not want to own."
Tip #5: Trump Win? Consider Managed Care Stocks
Bob Lang, Real Money Contributor said if there is a Trump victory, consider the managed care sector.
"This is a group that always gets beaten down whatever it seems like the Democrats are really leading in the polls. We saw this group really take off towards the end of 2019 after Elizabeth Warren, who was once leading for the Democratic nomination after she sort of fell by the wayside in the polls. So in that group our favorite is CVS Health (CVS) - Get CVS Health Corporation Report. It's really cheap on an earnings basis. We really like the vertical integration between Aetna Aetna the IBM IBM business as well as the HealthHUB store or expansion that they're doing right now. And they're rolling out if you want to go. Best of breed UnitedHealth Group (UNH) - Get UnitedHealth Group Incorporated Report it's a name we've been in and out of through the years really strong business. They are consistently growing earnings on a double digit basis capital term capital returns always a focus there. So if you think this is going to be sort of a status quo administration with a Trump win. I would say managed care definitely has room to run."
Bonus: Jeff Marks, Senior Analyst Action Alerts Plus gives a sneak peak of the advice typically reserved for members. In the video discussion above he answers the most asked question "How is the election going to impact stocks."
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