If Republican nominee Donald Trump is elected president, investors may see increased volatility in the market, only because of the unknown element of his political experience and how unpredictable his personality can be, said Joseph Heider, president of Cirrus Wealth Management “He has no history as a leader and his behavior could be a wild card for the overall market direction,” said Heider. In terms of sectors, Heider said defense stocks will continue to fare well if Donald Trump captures the White House because Republicans are usually committed to spending and increasing the military budget. He also believes pharmaceuticals will outperform if Trump wins because Democrats tend to see pharma as the “devil of healthcare”. “If a Republican is elected, this play might be more of a sigh of relief in that the government won’t go after pharmaceuticals,” said Heider. Along those lines, Heider said energy stocks could see a short-term benefit because there would be a relaxation of environment regulations around drilling. If Senator Hillary Clinton wins the presidency, markets will maintain the same plodding trading pattern seen under the Obama administration, in Heider’s view. “She’s been around long enough that the market has a good idea of her and she’s less volatile than Trump,” said Heider. As for the best areas to invest under a Hillary Clinton administration, Heider points to healthcare , an area quite familiar to the candidate. “If a Democrat takes office, they will maintain Obamacare and more than likely attempt to expand it. This could bode well for the sector from an investment standpoint,” said Heider. Small cap and micro-cap stocks will do better under Clinton in his view because areas like small business administration loans would see loosening. And infrastructure would also do well because in his opinion a Democratic candidate would “tend to spend more on industries related to building roads and bridges.”
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