Time to move on? Here’s an investor advice on what to do after the election


Counting is still on, but Wall Street is liking what it sees from the election.

Even with the loss on Friday morning, the futures contract on the S&P 500 ES00,
-0.75%
Up nearly 4% since polls closed on the West Coast on Tuesday night, with an even stronger gain for the tech-heavy Nasdaq 100Q00,
-1.01%.
Deutsche Bank’s Asia Strategists said in a note to customers, “It’s time to move on”, although they said that uncertainty could still persist for several days.

Jim Smiggle, chief investment officer of non-traditional strategies at SEI Investments, says the market is pricing in divided government. “What we’re seeing in the market is a belief that with that divided government and with a big mandate that would have come with the blue wave, I think the importance really comes back to the monetary side of things, “Smigil said, leading SEI’s asset allocation program. The Federal Reserve kept interest rates unchanged on Thursday, and Chair Jerome Powell said the central bank was “not out of power” to do more.

“Monetary stimulus is going to do a good job of keeping the liquidity flowing in the market, and this kind of growth is going to benefit high-flying stocks,” Smiegel said. “And you should probably look at the reflection theme, struggling a little bit.”

Smiegel says the healthcare sector could be attractive due to the election. “A large-scale effort to remake the healthcare sector is likely off the table,” he said.

The oil field, he says, is meeting at a point in the cycle, where it can reverse supply diverted from the market. The oil market “may not be ready for an increase in demand if we see something similar to normal in 2021.”

Smiegel says that SEI, which had assets of $ 738 billion under management at the end of September, is a fan of Gold GC20,
+ 0.43%.
“We still like sleeping here, even though it’s rallying to a great extent,” he said. “Even with this situation, with a divided government, which should moderate the huge increase in government debt, we still consider this trajectory as the only way. So we see real yields very low, we see that debt is still growing at a fairly fast pace, and, net worth, we still see that there is a fairly decent environment for gold investors. “

Right now, he says, the S&P 500 SPX,
+ 1.94%
Is very concentrated. “You think you’re getting a diversified investment, and 25% of your investment is in just five names, and they’re all big tech names,” he says, referring to Apple AAPL,
+ 3.55%,
Microsoft MSFT,
+ 3.18%,
Amazon AMZN,
+ 2.49%,
Facebook fb,
+ 2.54%
And Google Owner Alphabet GOOG,
+ 0.81%.
Smiegel said investors want to switch to actively managed funds to gain US exposure in a more diversified way.

SEI is becoming more interested in emerging markets as well as Asia. “We haven’t put anything in yet, but they are definitely areas of interest that look at both our outlook and our approach to recovery in those areas from an economic standpoint in 2021.”

The buzz

The election remains a knife-edge as the world awaits results, with former Vice President Joe Biden holding an edge over President Donald Trump in the Electoral College. But the result is still close to call. Biden narrowly overtakes Trump on the battlefield of Georgia. The president has sent several tweets in the past, challenging him to express his desire to challenge the “illegal” votes tabulated after the election. The two men, found outside the Pennsylvania Convention Center where votes are being counted, were being held after a threat was reported to the Philadelphia Police.

Nonform payroll data is due at 8:30 pm Eastern. According to economists nurtured by Marketwatch, the economy created an estimated 530,000 jobs in October, which would be the smallest benefit of the recovery. The unemployment rate is seen as low as 7.6%.

Coronavirus cases continue to be reported, with the US seeing at least 100,000 new cases on its second day. According to data from the European Center for Disease Prevention and Control, European cases have increased, but are below their peaks.

Earnings from companies including hotel operator Marriott International March,
+ 2.92%
And insurer American International Group AIG,
+ 5.82%.

Online real estate service group Zillow Z,
+ 3.90%
Ready to climb after reporting its highest gain on record. Exercise Equipment Manufacturer Peloton Interactive PTON,
+ 6.77%
Profit came after tripling the revenue. Media Group News Corp NWS,
+ 3.96%
Reported stronger income and revenue than forecast. (News Corp is the owner of MarketWatch, the publisher of this report.)

Russian President Vladimir Putin plans to drop health concerns early next year.

market

There has been some wind since Friday morning. Futures at futures rate YM00,
-0.57%
146 points fell.

Dollar DXY,
-0.23%
Slipped, and crude oil futures CL.1,
-3.22%
fell down.

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