GOLDMAN: Trump vs. Clinton is the biggest fight since Mayweather vs. Pacquiao
Business Insider
Published Sep 26, 2016 09:08AM ET
Updated Sep 26, 2016 10:07AM ET
The first 2016 US presidential debate is the biggest matchup since the Mayweather/Pacquiao fight, according to David Kostin, the chief US equity strategist at Goldman Sachs (NYSE:GS).
Besides fretting and guessing about the Federal Reserve's Bloomberg poll put the Republican nominee ahead at 43%, versus 41% for Clinton, with a 3.1-percentage-point margin of error — essentially tied.
Kostin's second investing recommendation is to buy shares of companies with large exposure to US government revenue.
That's because both candidates have emphasized the need for increased fiscal spending on infrastructure to grow the economy. Goldman's basket of such companies has gained 11% this year, versus 7% for the S&P 500.
The third recommendation, more in light of central bank meetings last week, is to take a buying opportunity in defensive stocks following the recent drop.
Defensive sectors, which usually do not move in tandem with the economic cycle such as utilities and telecoms, are trading below their 10-year average valuations compared to the S&P 500, Kostin said.
"If rates remain low, defensives will likely rebound given their high dividend yields and relatively stable earnings as well as the large underweights in mutual fund and hedge fund portfolios," he said.
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Written By: Business Insider
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