One equity strategist says that certain sectors in equity markets have historically benefited from U.S. presidential election cycles.
Lori Calvasina, the head of U.S. equity strategy at RBC Capital Markets, said in an interview with BNN Bloomberg on Friday that during election years markets tend to be positive with subpar gains, performing better in the second half of the year. She added that you typically see a “couple of pullbacks” occurring in the spring and fall as well as an “election pop” when there is a clear winner.
She added that there are currently a lot of unknowns regarding how markets would react to each presidential candidate.
“But I would say if you look at the historical playbook (in) all presidential election years, because markets typically do better in the back half, cyclicals tend to do well (like) financials, energy industrials materials,” she said.
“I think that’s because as the market rallies back and starts to sniff out a winner, it starts to figure out what those agendas look like. And whoever wins is selling a better vision for the country and the economy.”
To watch the full interview with Calvasina, click the video above this article.
