Before Tuesday, November 9th, almost all indicators pointed toward a Hillary Clinton victory and Democratic control of the US Senate. However, that did not happen. Now that the election is behind us, it’s time to start looking at which segments of the economy and markets will benefit from the new political and economic situation.
As with any administration change, there will be some sectors of the economy and the market which will benefit and some which will not. A prime example of this is what occurred this morning in different areas of Health Care. Pharmaceutical companies were expected to suffer in a Clinton administration. Most of those stocks are up 2-10% today. On the other hand, hospitals were believed to benefit from a Clinton win and are down similarly today. This is happening because investors see the potential for longer-term trends, not simply quick trades.
To that end, we are reviewing several potential areas which could benefit from this changing political and economic climate just as we did eight years ago. Our mandate is to grow portfolios when opportunities are created and to protect portfolios when we need to. Our Investment Committee will continue to carefully consider market conditions.