After the end of the 90-minute long third debate last week, it seems only a matter time before the Democrat candidate, Hillary Clinton, becomes the new U.S. President. In the debate, both sides attacked each other with blazing guns. At the end of the debate, media as well as several opinion polls adjudged Hillary as a winner.
Investors have always remained skeptical about the unpredictable Trump, while Hillary Clinton was preferred as a candidate who will extend Obama's policies. With the third and last debate pointing more to Hillary’s victory, it is wise to invest in mutual funds from those sectors that gained prominence in her speeches.
A Debate to Remember
Republican candidate, Donald Trump entered the final debate in Las Vegas with the target to broaden his support base. He started the debate with composure when he responded to moderator Chris Wallace’s questions related to the Supreme Court. However, thing turned ugly following his derogatory comments about women and abortions. He also failed to make any sense when he said that the multiple sexual assault charges on him are only Clinton’s foul play. Further, his claims of a rigged election seemed bizarre and his unclear stance on accepting the election results as quoted by Clinton “is horrifying.”
Meanwhile, Clinton spoke directly to women when she addressed late-term abortions and showed her commitment toward protecting women and children. Clinton also voiced her support to technical training in high schools and colleges, which highlighted her fully formed technology policy.
Polls Favor Hillary
Following the final debate, Hillary clearly has a lead in the polls. A CNN/ORC survey gave Hillary a 13 point lead over Trump. Among the 547 registered voters interrogated, 52% deem Hillary as a befitting candidate while Trump managed 39% support.
Moreover, the Associated Press-GfK poll indicated that out of 375 voters, 51% favored Hillary, while only 37% support Trump. Voting has already started in almost 37 states, where the Democrat candidate is clearly leading in several key states. Trump’s chances of becoming the next President are bleak. Further, a Fox News poll also showed that Hillary is having three-point lead over her Republican counterpart.
Sectors in Focus if Hillary Wins
Hillary has proposed $275 billion for repairing roads, bridges, public transport and high-speed internet. This will have a positive impact on the construction as well as real estate industry. Mrs. Clinton wished to hike the federal minimum wage to $12 from $7.25 and even to $15 in regions where feasible, which in turn will benefit the consumer discretionary sector.
Hillary will most likely bring more regulations for big oil and subsidies for alternative energy, which will have a positive impact on the energy sector. Solar energy stocks will also be the beneficiary of a Clinton presidency as she pledges to install 500 million solar panels. Further, Obamacare will be extended, which will be good for healthcare stocks.
Buy These 5 Mutual Funds
Against this encouraging backdrop, we have selected five mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have impressive year-to-date (YTD) return. They also have minimum initial investment within $5000 and low expense ratios.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
John Hancock Real Estate Securities (JIREX - Free Report) invests a large proportion of its assets in equity securities issued by real estate investment trusts and companies. Not more than 10% of its assets may be invested in foreign firms.JIREX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.78%, lower than the category average of 1.20%. John Hancock Real Estate Securities has five-year annualized returns of 10.4%.
Fidelity Select Retailing Portfolio (FSRPX - Free Report) seeks capital growth. FSRPX invests a large chunk of its assets in securities of firms involved in merchandising finished goods and services to consumers. FSRPX focuses on acquiring common stocks of companies throughout the globe. FSRPX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.80%, lower than the category average of 1.34%. Fidelity Select Retailing Portfolio has five-year annualized returns of 19.1%.
Fidelity Select Environment and Alternate Energy Portfolio (FSLEX - Free Report) invests more than 80% of its assets in companies which are involved in business activates relating to renewable and alternative energy. FSLEX seeks appreciation of capital. FSLEX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.95%, lower than the category average of 1.22%. Fidelity Select Environment and Alternate Energy Portfolio has five-year annualized returns of 8.9%.
Hartford Healthcare HLS IA (HIAHX - Free Report) seeks growth of capital for the long run. HIAHX invests a large chunk of its assets in securities of both U.S. and non-U.S. health care companies. The fund invests in securities of companies located in several countries, irrespective of their size. HIAHX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.86%, lower than the category average of 1.29%. Hartford Healthcare HLS IA has five-year annualized returns of 19.5%.
Schwab Health Care (SWHFX - Free Report) seeks long-term capital appreciation. SWHFX invests a large portion of its assets in equity securities issued by companies in the health care sector. SWHFX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.79%, lower than the category average of 1.29%. Hartford Healthcare HLS IA has five-year annualized returns of 15.9%.
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