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US Presidential Elections draws a potential Trump card for American Defence – Investment Insights

There’s no doubt a lot of interest in US politics as we come into the Presidential Election. Trump has dominated headlines as he looks to sure up the Republican nomination. The betting markets suggest that Trump has basically secured this, based on recent primaries and Hillary is the front runner on the Democratic side of politics. We watch this closely because we have several investment strategies on the Invast PortfolioInvestor platform which are tied to the US economy. One in particular stands out – American Defence.

We’ve been discussing the implications of this strategy under a Trump Presidency. Would he really pursue some of the things that he has been saying? It’s too hard to tell at this stage, but we’re starting to see some price movement on stocks in this strategy selection. For example, Boeing has performed nicely over the past month, adding around 13% as of the month ending 18 March.* Trump has been vocal in criticising countries that seek American aid yet purchase Airbus planes from European competition. There are a lot of investment implications if, under the still unlikely scenario, Trump becomes president.

The prospect of full blown war is still not being taken seriously by the market in the way stock prices are behaving. One would think that Trump cannot use any executive powers to bypass congress and risk United States geopolitical security, just for the sake of fulfilling some campaign promises. But then again, who knows how this can pan out. We have seen public opinion change on many other political issues, like the Iraq war for example. Many experts thought the Bush administration would not put US troops on the ground, but they did in 2003.

The American Defence US strategy is worth adding on your watch list as the US Presidential Election draws closer.

To find out more about Invast’s PortfolioInvestor platform – and strategies like American Defence US – click here.

Best regards,

Invast Investment Committee

These are our initial impressions only, please make sure you always read all disclaimers on this website and individual reports very carefully. The Invast team of advisors are happy to answer any questions you may have, so give us a call today on 1800 468 278 or email support@invast.com.au. Alternatively, use our live chat facility on invast.com.au.

*Past performance is not indicative of future performance. The calculation of the returns is based on the performance of the actual underlying securities, in accordance with the weighting envisaged by the portfolio. These performances exclude financing and commission costs.

Featured Portfolios

The Invast PortfolioInvestor platform offers a collection of Strategic Investment Portfolios (SIPs). SIPs are professionally researched and constructed portfolios of CFDs over underlying stocks and ETFs, which reflect popular market themes or strategies. You can buy SIPs across local and international stock exchanges in one click.

American Defence US

American Defence US

A selection of companies which will benefit from an increase in military spending and defence budgets as tensions grow worldwide.

 

Luxury Brands

Luxury Brands

This SIP is a portfolio stocks that are in the business of luxury living.

 

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