Market Overview

3 Ways To Build An Election-Proof Portfolio

3 Ways To Build An Election-Proof Portfolio
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Benzinga's M&A Chatter for Thursday, October 20, 2016

Following Monday’s presidential debate, many traders are now more uncertain than ever which candidate will be the next president and what that will mean for the economy and the stock market. With the November elections just weeks away, now may be the perfect time to try to "election-proof" your portfolio.

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First off, no investments anywhere are 100 percent risk-free, so there’s no way to completely election-proof your portfolio. However, here are three strategies you can try.

1. Retail Stocks

The holiday season is typically strong for retail stocks, and Argus recently listed Home Depot Inc (NYSE: HD), Lowe’s Companies, Inc. (NYSE: LOW) and Kroger Co (NYSE: KR) among its top e-commerce-proof retail stock picks.

2. Gold

Gold is often seen as a “flight to safety” trade, and the precious metal has nearly zero correlation to the stock market in the long term. The SPDR Gold Trust (ETF) (NYSE: GLD) is a popular option.

3. Dividends

The stock market goes up and down, but dividends paid by reliable blue chip companies are as close to a guarantee as you can get. The ProShares S&P 500 Dividend Aristocrats ETF (NYSE: NOBL) offers diversified exposure to S&P 500 stocks that have increased their dividends for at least 20 consecutive years.

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