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Investors Move To Cash, Anticipating Democratic Gains In U.S. Nov Elections

FYI: The likelihood of a Democratic party takeover of at least one house of the U.S. Congress in the midterm elections in November is prompting some portfolio managers to move more money to cash and rotate away from sectors like financials and technology that could see greater regulatory scrutiny.

Fund managers from Federated Investors, OppenheimerFunds, and BMO Global Asset Management are among those who are repositioning their portfolios and seeing cash as more attractive with the Nov. 6 elections less than 100 days away.
Regards,
Ted
https://www.reuters.com/article/usa-stocks-weekahead/rpt-wall-st-week-ahead-investors-move-to-cash-anticipating-democratic-gains-in-u-s-nov-elections-idUSL1N1UT1NL

Comments

  • edited August 2018
    Hey @Ted, Thanks for posting the article. Seems, Old_Skeet has been thinking much the same as I started my cash build back in June/July with my mutual fund distributions; and, I'll let my fund manages position their respective funds. It's interestingly that I've now noticed a sector rotation shift by comparing a recent Xray of my portfolio to one done back in March. Currently, the Xray shows I am light in tech, industrials and discretionary as compared to the S&P 500 Index. I'm about even in financials. With this, this means I am overweight in a good number of the other S&P 500 sectors such as utilities, energy, materials, real estate, communication services and consumer staples.

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