Election day…..investors have sold shares increasingly as Trump has gained more support. You should know by now that Trump would be bad for economy. At least that is how markets see it. So prepare for good rally back if Hillary wins. Of course there are some days still between vote and some polls could come out to stir the soup more. If you have cash there is only one thing to do at after the result. Buy more. Because if Trump wins there could be nice sell off and therefore buying opportunity. Or if Hillary wins, you will likely feel left out of party and want to chime in to the rally. I didn’t sell anything so I won’t do anything either after the election. I just look at numbers when I am investing and not trying to time market and this time the election.
Forbes wrote that if Hillary wins more than 80% of the electoral collage, markets are likely rally +8% according to what has happened in history. Foreign policy could also very quickly back fire in Trump case because he has more or less promised to kill the trade with China using 45% import tax. Also EU might give him Trouble in many regards due to similar reasons(not supporting free trade deal or climate change battle)
Some practical tips if Hillary wins
Buy infrastructure stocks. Infrastructure spending is likely increase to get veins of the economy pumping. Hillary has promised focus on this
Buy defence stocks. Hillary has been a though lady in military issues and this is unlikely to change. So more spending here to keep up with Russia and China and keep promises to NATO members. Trump victory would tank these stock because he does not want to spend money on world peace and keep USA a militaristic superpower anymore.
Consumer staples. Hillary likes to increase minimum wage and buying power to the lower earners will channel to these stocks.
Health care. This will tank the hardest if Trump wins. A lot of stock prices of these stock rely on Obama Care. But also with Hillary limiting profits and unregulation will likely stabilize the profit growth to more modest level. Do not touch is my take here. Sector seems overvalues related to the risks.
I would also keep on eye in Clean tech sector because more investments to cleaner energy production has to be made to get the climate change in control globally.
So keep these things in mind after the election day.