As the polls tighten into the first presidential debate next Monday, Wall Street is looking at the investment ramifications of a Donald Trump or Hillary Clinton victory.
Deutsche Bank gave clients two 15-stock baskets Friday, one for each candidate, to take advantage of the short-term trade opportunity into and after the November election.
"This note identifies sectors, industries and stocks that we think would be price sensitive to an unbalanced election outcome tilted toward one party," Deutsche Bank's David Bianco wrote in a note to clients.
"Longer term, it will be the policies and implementation that will influence markets, which both parties, many individuals and circumstances will craft."
Bianco said a Republican sweep is bullish for domestic oil companies as they will likely be able to drill more. However, more supply means lower prices, which could be a net negative for the energy sector, according to the strategist. Moreover, he believes a Republican administration may lead to a more hawkish Fed, which is positive for the U.S. dollar.
Here are the two 15-stock baskets Bianco recommends for the next few weeks depending on who is likely to win the election.
