I’d like to continue our video series on Politics & Your Portfolio.
DON’T bet on certain sectors based on who is president: Given the rhetoric of each party, investors would assume that certain industries should perform better based on who is in office. While that logic seems sound, it doesn’t always play out in the real world.
The oil and gas industry is a good example of this. Under a Republican administration, the “drill baby drill” mantra would lead many to believe that traditional energy companies would thrive while clean energy stocks would plummet. Interestingly, the exact opposite occurred when Trump was in office. On the flip side, under the Biden administration, oil and gas stocks boomed, while clean energy companies fell.
One’s investment thesis does not always work out neatly, no matter how logical it seems. If you intend on making portfolio adjustments based on who wins the election, don’t overhaul your whole strategy because, as we can see, it may not go according to plan.