Amid all the partisan bickering, there is one thing both parties can agree on: The country needs some fiscal stimulus in 2017 to get the economy to pick up the pace.
Consequently, investors should buy stocks that will benefit from greater infrastructure spending, according to Morgan Stanley.
"In a rare example of bipartisan support, both candidates have discussed the need to repair crumbling infrastructure," strategist Andrew Sheets wrote in a note to clients Monday.
Hillary Clinton's proposal is a five-year $275 billion plan consisting of $250 billion in infrastructure loans and $25 billion to fund an infrastructure bank. Additional loan guarantees will result in $500 billion of total infrastructure spending, which will create 200,000 jobs, according to the strategist.
Although Donald Trump's plan is less detailed, the candidate has promised to "double" Hillary's infrastructure proposal. Morgan Stanley estimated $1 trillion of infrastructure spending will create 400,000 jobs and boost GDP by 0.2 percentage points in the first year.
"The correlation between infrastructure spending and equity returns has deteriorated in recent years, but candidates' outsized plans could still be a tailwind for infrastructure-levered stocks," he wrote.
To take advantage of the call, here are four stocks Morgan Stanley recommended as "most exposed" to more infrastructure spending.
