Investing on the US Election Odds
Instead of fretting over who is going to win the next debates, why not prepare your investment portfolio for the next presidential term.
It’s not as hard as it sounds. President Bush didn’t exactly cut the defense budget, just as President Obama didn’t close free trade agreements that would have helped some companies and hurt others.
If you know a bit about both candidates, you can prepare and hedge your portfolio for whoever wins in November.
Energy is easy. A Romney win would be a big coup for the coal industry. Don’t expect a President Romney to invest more money in solar companies that haven’t helped Obama’s PR efforts.
Drilling companies will also do well if Romney wins as he has promised to drill for oil and build the Keystone Pipeline that President Obama has thus far refused to support.
A Republican win is always a good thing for the defense industry. The healthcare industry will do well no matter who is elected thanks to an aging population.
Obama Care and Romney Care are as complicated as String Theory, so we don’t advice you to change your portfolio based on where things are going in health care. No matter what happens, people will continue to get sick and get better.
If you think neither are going to shake things up, then perhaps you’ll consider investing in emerging markets. Maybe you are convinced that the future is in Greece and Spain and will put all of your life’s savings in Greek and Spanish bonds.