The Possible Policy Outcomes of the Midterms and How to Prep

Regardless of who wins, the political fallout associated with the midterm elections will likely shake up the markets, contributing to renewed volatility, but the elections could pave the way for new opportunities in portfolio allocation strategies.

In the upcoming webcast, The Possible Policy Outcomes of the Midterms and How to Prep Your Portfolio, Matthew Bartolini, Head of SPDR Americas Research, State Street Global Advisors; Gary Fullam, Chief Investment Officer, GLOBALT Investments; and Adam Grossman, Chief Investment Officer, Global Equity, RiverFront Investment Group, will discuss their thoughts on how to best reposition financial advisors’ client portfolios based on the midterm elections.

For example, in the energy sector, the SPDR Kensho Clean Power ETF (CNRG) and the SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX) could be playing for a Democrat-controlled Congress, which would be more friendly toward shifting to a climate-friendly policy outlook. On the other hand, the SPDR S&P Oil and Gas Exploration and Production ETF (XOP) and the SPDR Oil & Gas Equipment & Services ETF (XES) would be investment ideas for a favorable Republican outcome, which could restrict the implementation of Biden’s preferred climate agenda, curtailing additional climate investments.

GLOBALT is a leader in building portfolios that focus on the changes in the global marketplace.

“The global economy and markets continue to be very volatile and unpredictable in nature. Our goal is to provide a steady hand to guide you in this journey of ever-changing markets,” according to Globalt.

Globalt Investments offers a range of model portfolio strategies, including asset allocation strategies that range from defensive, conservative, income growth balanced, growth, and high growth targets; equity strategies that range from large cap core growth, large cap core, and equity targets; and lastly, environmental, social and governance strategies.

“In 1991, we introduced our large cap growth strategy focusing on risk controlled, diversified portfolios of United States growth companies that derived a significant amount of revenues from outside the United States. In 2003, after several years of research, our focus on the ever-changing global marketplace led us to build a suite of asset allocation strategies positioned solely in Exchange Traded Funds and trademarked innovatETF Strategies,” according to Globalt.

RiverFront Investments Group offers a suite of RiverShares Model Portfolios comprised solely of RiverFront sub-advised ETFs. These models are constructed based on investor time horizons and risk tolerances.

“RiverFront offers Fixed Income, Balanced, and Equity Solutions for various investment objectives and risk tolerances. We have designed strategies to align with client investment needs from all fixed income to all equities, ranging from the most conservative at the top to the most aggressive at the bottom,” according to RiverFront. “The Balanced strategies and Global Growth combine RiverFront’s strategic asset allocation process with shorter-term tactical tilts within the portfolios as market conditions warrant. International Opportunities and Dynamic Fixed Income use our global macroeconomic analysis and quantitative modeling to create flexible and broad portfolios in both mandate and implementation.”

Among RiverFront’s sub-advised ETFs, the RiverFront Dynamic US Flex-Cap ETF (NYSEArca: RFFC) seeks to provide capital appreciation by investing at least 65% of its net assets in a portfolio of equity securities of publicly traded US companies. Equity securities include common stocks and common or preferred shares of Real Estate Investment Trusts (REITs).

The RiverFront Dynamic US Dividend Advantage ETF (NYSEArca: RFDA) seeks to provide capital appreciation and dividend income by investing at least 65% of its net assets in a portfolio of equity securities of publicly traded US companies with the potential for dividend income. Equity securities include common stocks and common or preferred shares of Real Estate Investment Trusts (REITs).

Financial advisors interested in learning more about investment positioning ideas based on the midterms can register for the Monday, November 7 webcast here.