The events of Super Tuesday didn’t solidify much in the way of the presidential race on the Democratic side, but one person has taken a few guesses as to which exchange traded funds (ETFs) will win if Sen. John McCain takes the presidency.
Based on McCain’s record and statements over the last few months, Kevin Baker for The Street predicts that certain sectors, in particular defense and biotechnology, could perform especially well under his leadership.
McCain has said that he’s willing to keep troops in Iraq for 100 years if that’s what it meant to achieve victory. He wants the United States to "bolster its regional military posture." PowerShares’ Aerospace & Defense (PPA) could benefit if McCain stepped up military spending. Among its top holdings are Lockheed Martin (LMT, 6.3%) and Boeing (BA, 6.6%).
McCain also supports embryonic stem-cell research, which could lead to federal funding for it to be restored. If that happens, the SPDR S&P Biotechnology (XBI) could benefit from renewed focus on the "care and cure of chronic disease." Among the fund’s top holdings are Regeneron Pharmaceuticals (REGN, 3.6%) and Genentech, Inc. (DNA, 3.5%).
In the interest of balance, Baker will talk later about which ETFs stand to gain in a Hillary Clinton and Barack Obama presidency.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.