No matter who wins, the upcoming election could spook the bull market. Luckily, there are a few things investors can do to prepare.
“We think it’s much more important for investors today to be positioning for volatility,” said Kate Warne, principal of research at Edward Jones, a retail brokerage. “People who had their portfolios appropriately weighted six months ago, may have too much in equity.”
Stack Financial Management, which manages about $700 million from its Whitefish, Mont., headquarters, is already backing away from stocks. “We’re nowhere near full bear-market defensive mode, but at the same time, we want to hedge our bets a little and take some money off the table,” said Senior Portfolio Manager Eric Vermulm.