**Election Uncertainty: How to Position Your Portfolio for Success**
As the 2024 presidential election approaches, investors are bracing for potential market volatility. With former President Donald Trump and Vice President Kamala Harris as frontrunners, it’s essential to understand how their economic policies could impact your investments.
**Focus on Fundamentals**
Seema Shah, chief global strategist at Principal Asset Management, reminds investors that earnings growth, inflation, and Federal Reserve actions are the primary drivers of market performance. While election uncertainty can create noise, it’s crucial to stay focused on these core factors.
**Potential Winners and Losers**
John Mowrey, chief investment officer of NFJ Investment Group, notes that the election outcome will have nuanced effects on various sectors. Corporate tax rates, regulation, and geopolitics will influence the performance of different industries.
**Small-Cap Stocks: A Potential Trump Play**
Historical data suggests that small-cap stocks may benefit under a second Trump administration. Paul Hickey, co-founder of Bespoke Investment Group, points out that small caps outperformed the S&P 500 in the months following Trump’s 2016 election.
**Renewable Energy: A Harris Priority**
Under a Harris presidency, renewable energy is likely to receive continued support, building on the investments of the Biden administration. Stephen Myrow, managing partner of Beacon Policy Advisors, highlights the significance of the Inflation Reduction Act for wind, solar, biofuels, and nuclear hydrogen.
**Positioning Your Portfolio**
To navigate the uncertainty, investors should consider the potential implications of each candidate’s policies on their portfolios. By understanding the sectors and industries that may benefit or suffer under each administration, investors can make informed decisions to maximize their returns.
Watch the video above to learn more about the sectors and industries that stand to benefit the most under each presidential candidate, and what steps you can take to position your portfolio for success ahead of the 2024 election.
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