(By Tyler Kocon) This coming November, an onslaught of Americans will trudge down to the local polling station and make one of the most immensely important decisions they will make all year long. One simple action, one 5-minute space in time, one ballot cast can make an incredible difference in the lives of over 300 million American citizens that call this land home.
A seemingly innocent gesture can generate a quandary of effects on the lives of millions. That is the essence of modern day democracy. That is the reason these same people will head to the polls. The same reason that these individuals will claw and fight tooth and nail for their favorite candidate or political party despite the outcome. In the end, we all have an important decision to make.
Yet, no matter which outcome prevails, it is unlikely that the status quo will be fully maintained. That is why Split Rock Private Trading has decided to take a proactive approach to the coming election season. No matter which way the wind blows, it is imperative that money managers and investment advisors alike have a blueprint for the end result.
Each political party, and consequently each individual candidate, maintains their own distinct agenda. While both parties have some areas of overlap (more on this later), there are also several specific sectors of the American economy where each political party may have severe influence. That being said, we have identified several important areas to focus on in lieu of a corresponding political victory and the assumption of the White House.
In the end, no matter which candidate takes the office of President following the November election, there is one area of the economy that overlaps the policies of both parties. Regardless of the results, companies operating in the energy sector (mainly oil and natural gas companies) have a bright future ahead of them.
With the constant concept of energy independence raging through the minds of the constituents, both candidates will likely make this issue a front-runner during the closing weeks of their political campaigns. Because of this realization, the portfolio management team here at Split Rock Private Trading has already begun adjusting their investments to correspond with this new idea.
We have already added some holdings that adhere to these principles and operate in the area between the two candidates; companies that maintain oil as well as natural gas exposure, and companies that provide servicing to these same organizations as the path to energy independence keeps plodding forward.
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