Views on the Market

November Elections and Sector Implications

September 26, 2012

Regardless of the outcome, we expect increased volatility going into the first quarter as the President and Congress wrestle with fiscal responsibilities and avoidance of the fiscal cliff.
-Cetera Research Team

LOS ANGELES - As investors, we often ponder how our political views mesh with our investment goals and opportunities. Each political party has differing visions for the role of government and the path by which it moves towards a shared goal of fiscal sustainability. So in no small way, the Nov. 6 elections will likely have direct consequence on which equity sectors (and their company constituents' earnings) may prosper or struggle in the coming term. Take, for example, the historical Democrat view to favor social entitlement programs via their association as the "tax and spend" party. If Democrats win a second term, healthcare insurance firms will likely continue to benefit as the healthcare reform act proceeds toward insuring millions of new customers. Here are our other broad findings:

Cetera Market Commentary