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The 2020 presidential election could mark a major turning point for stock investors as a potential shift in policies would have meaningful impact on different sectors.
For those looking to place bets on specific election outcomes, consider these two portfolios created by Wells Fargo analysts that break out the biggest potential winners on a Trump or Biden victory.
While many consider former Vice President Joe Biden's policies of higher taxes and tighter regulations as less Wall Street-friendly, his win could particularly benefit megacap tech and growth stocks at the expense of value names, Wells Fargo said. If Trump is reelected, cyclical sectors including financials, materials and industrials are poised to outperform, the bank said. The duo will face off in the first presidential debate Tuesday.
The Wall Street firm looked at historical evidence as well as policy stances from Trump and Biden to construct model portfolios for investors to position accordingly. Here are their top picks.