Jeff Benjamin

Investment Insights: The Blogblog

Jeff Benjamin breaks down the game for advisers and clients.

Post-election outlook? Rewind to 2008

Washington gridlock and a happy stock market

Nov 7, 2012 @ 3:03 pm

By Jeff Benjamin

The crowds might have been smaller this time around and the election results might have been closer, but in the end it seems we are almost back to square one in terms of a market outlook under President Obama.

While the S&P 500 Index had a total return of about 50% over the past four years, and one could argue that plenty of ground has been covered over that time, market watchers virtually across the board are singing a familiar post-election tune.

As with four yeas ago, the infrastructure sector looks promising because of expected spending to upgrade roads and bridges.

Consumer staple retailers should be indirect beneficiaries of extended unemployment programs.

And the constant emphasis on healthcare reform bodes well for pharmacy benefit managers, diagnostic labs, and hospital facilities.

The anticipated losers? Big banks, health insurers, defense contractors, and energy companies.

Tim Leach, chief investment officer at U.S. Bank Wealth Management, said the stock market should generally like what it is getting again from Washington.

“From a historical point of view, the market has tended to prefer it when Washington's power is relatively neutralized,” he said, in a reference to the divided houses of Congress.

“Once we get over the emotional reaction of today [with stocks down more than 2%], my sense is that the market will settle into the reality of power being in check,” he added.

So it is official, we're all four years older, stocks are up a bit, and the wheel-spinning in Washington continues.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Identifying unconventional risk and finding a secret weapon in client portfolios

Advisers are hungry to find new alternative investment opportunities. But Rupal Bhansali of Ariel Investments says the secret weapon could be right under your nose - in cash.

Latest news & opinion

Nontraded BDC sales in worst year since 2010

The illiquid product's three-year decline is partially due to new regulations and poor performance.

Tax reform debate sparks fresh interest in donor-advised funds

Schwab reports new accounts up 50% from last year, assets up 33%.

Nontraded REITs to post worst sales since 2002

The industry is on track to raise just $4.4 billion, well off the $19.6 billion it raised just four years ago, as new regulations hinder sales.

Broker protocol for recruiting a boon for clients

New research finds advisers whose firms have joined the agreement take better care of customers.

Meet our 2017 Women to Watch

Introducing 20 female financial advisers and industry executives who are distinguished leaders, advancing the business of providing advice through their creativity and hard work.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print