How to Invest AFTER the Election
There are a few big sectors I’m eyeing for the next four and maybe even eight years. Sectors that I personally think will boom after the election. Let’s not waste time here.
Clean energy. There’s one ETF that comes to mind and no, it has NOT done well in the last few years. And there’s no guarantee it will do well in the future. There are a lot of stocks in ICLN. A few are maybe strong. A lot are highly speculative. As a result, with an ETF like ICLN, I’d either stay away or treat the entire fund like a speculative lotto ticket. That being said, their first and largest holding is FSLR. And that might be worth researching as it’s done very well in the last 12 months.
Up next is healthcare. I’m talking pharmaceuticals, biotech, and healthcare providers. You can cherry pick the top ten holdings of a popular healthcare ETF like IYH if you were the sort of investor who wanted individual stocks instead of one ETF. There are a lot of names in their top 10 that I’m sure you’d recognize.
I am also incredibly bullish on infrastructure. I don’t just mean our roads, airports, bridges and schools. I’m lumping housing into this, as well. So there are two ETFs we’ll consider. The first is IFRA - an infrastructure focused ETF. The second is ITB - a homebuilder ETF. When we think about homebuilders, generally we think of stuff like DR Horton - actual homebuilding companies. But there’s more to it than that. There’s paint! There are stores like Home Depot. They all factor into homebuilding.
We can’t ignore technology. I know Goldman Sachs said they thought they S&P 500 would see 3% annual growth for the next decade, but uhhh. I think they’re wrong. I think we’re still at the groundfloor for AI and smart tech. Not to mention cybersecurity with so much more info being online and SO many more people working from home. When I think technology more broadly, I think about an ETF like FTEC. But if we’re talking about cyber security (and we can’t forget about the risk of cyberterrorism), we need to look at something like HACK as well.
Like I said, my favorite little hack for finding individual companies to invest in is to cherrypick these funds top 10 holdings. Usually I’ll start by looking at their two largest and running some fundamental analysis to see which one is stronger or best for me. And if I don’t want individual stocks and I’m bullish on the sector at large, hell, I might even just snag the ETF.
