With the 2024 presidential election about a month away, investors are bracing for potential market volatility amid uncertainty over whether former President Donald Trump or Vice President Kamala Harris will win in November. Be prepared.
“It’s really important for everyone to remember that there’s a lot of noise and volatility around the election,” said Seema Shah, chief global strategist at Principal Asset Management. “It’s really fundamental that “What will drive the market will be earnings growth, inflation and what the Fed will do.”
Differences in Republican and Democratic economic policies mean investors may make money by adjusting their portfolios based on the election results.
“There will certainly be winners and losers in this election cycle,” said John Mowrey, chief investment officer at NFJ Investment Group. “Depending on what’s happening with corporate tax rates, regulation and geopolitics.”
Some experts believe small stocks could benefit under a second Trump administration.
“If you look at what happened in November 2016 after Trump was elected, small caps did really well in the first few months, double the performance of the S&P 500,” said Paul Hickey, co-founder of Bespoke Investment Group. “Performance was slightly worse than large caps during his administration, but we didn’t see as big a performance gap as we see now between large caps and everything else. “
Some analysts predict that renewable energy will benefit under Harris’s presidency as she seeks to build on investments made by the Biden administration.
“The most important thing for a Harris administration is to protect and continue enactment of the Inflation Reduction Act, which is an important legacy of the Biden administration,” said Stephen Myrow, managing partner at Beacon Policy Advisors. “Many of them have yet to be implemented. ” But it’s significant for wind and solar, biofuels, nuclear hydrogen.”
watch video Learn which sectors and industries will benefit most under each presidential candidate, and what investors can do now to best position their portfolios ahead of the 2024 election.
