Exploring diverse investment opportunities regardless of election outcomes.
The November election is in its final stretch, and recently, we discussed the trends that have historically shaped markets leading up to the election. Many investors are already asking what the implications of a victory of either administration could mean for their portfolios since the administrations have varying policy proposals.
However, there are potential investment opportunities that reflect either a consensus in policy, or long-term themes that may continue regardless.
3 Themes we believe may continue to grow irrespective of the election outcome:
Defense Technology. While the two administration have very different foreign policy agendas, one area that seems likely to continue to attract significant investment is defense technology. This could benefit a range of industries and companies providing cybersecurity solutions, as well as those providing AI technologies in military operations.
Cryptocurrency and blockchain. Crypto is gaining more and more acceptance by investors including institutional investors. Similarly, we believe, blockchain, the technology that drives crypto, is likely to continue to grow, benefiting the companies supporting it.
Income focused vehicles. The Federal Reserve cut its benchmark interest rate in September by 0.50% and we expect interest rates to continue to move lower in the months ahead, regardless of the outcome of the election. For investors who are looking for income, investment vehicles that may provide meaningful income will continue to be attractive.
We believe, maintaining a well-balanced, diversified portfolio is a good approach during periods of uncertainty. Uncertainty about the election outcome does not need to translate into uncertainty about finding ways to potentially strengthen a portfolio.