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Trader Q&A: What Sectors Are Likely to Advance Post-election and Beyond?

Watch Schwab’s trading specialists discuss their thoughts on which sectors will be impacted in the long run by the presidential election of 2016.

Click to show the transcript

Next question from Terry in Georgia. What sectors do you expect to advance and decline after the election?

Randy Frederick: Yeah, I think we kind of - we kind of hit on this already, I think.

Lou Mercer: Yeah, it doesn't really matter who wins the presidency, right? I think for the most part, industrials are going to do well -

Randy Frederick: Industrials seem to be the favorite for regardless of what the outcome is, because whether or not we actually get infrastructure spending and a fiscal stimulus in that form, we do know that both of the Presidents favor that. What's I think - I think this is probably a good time to bring up the importance of this, is that the President doesn't make laws. The President can veto or approval a law, but Congress makes laws. And so if you end up with gridlock, a lot of what the two candidates are promising are going to be very difficult to get passed anyway.

But that said, it's very likely the market will react positively, and the industrial sector could very well perform ahead of what might actually ultimately happen, because the market generally tries to front run what's going to happen. It's one of the reasons why we see interest rates going up already, because the market expects the Fed's going to raise. So -

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