Hello everyone! Welcome to this weekly roundup of Investing stories from deputy editor Joe Ciolli. Please subscribe here to get this newsletter in your inbox every week.
Judging by yesterday’s drastic sell-off, pre-election market jitters are in full effect. And as investors contend with record-setting COVID-19 infections and uncertainty around economic stimulus, it’s clear this is not the usual run-up to an election.
With so many cross-currents to monitor, it can be confusing to know how to invest. For instance, a trade that capitalizes on coronavirus vaccine progress may be outdone by a specific election scenario. There are markedly few clear-cut outcomes.
The Investing team at Business Insider realizes this, and has been busy identifying investing recommendations set to thrive anyway. One such example is recent guidance provided by David Bianco of DWS Group, who has figured out how to flip two election-linked risks into profit opportunities.
For those expecting a Democratic sweep — which is currently the odds-on outcome — a fund manager at a $468 billion firm has formulated seven portfolio moves to make right now in anticipation.
Columbia Threadneedle has been hard at work analyzing 650 stocks over a nine-month period in order to fine-tune its strategy. That’s resulted in a handful of trades to make in anticipation for a Joe Biden victory, as well as some downside hedges in case an unexpected outcome stirs up volatility.
For more, see below Business Insider’s best Investing stories of the week, which include a wide array of additional recommendations, strategies, and tips for navigating uncertainty.
Todd Ahlsten has returned more than 540% to investors since he began managing the Parnassus Core Equity Fund in 2001. His older picks and successful investments during the coronavirus crash have helped him double the return of the typical fund in the category this year.
Jim Rogers — a legendary trader profiled in Jack Schwager‘s classic “Market Wizards” series and the chairman of Rogers Holdings — started trading in 1968 with just $600. Rogers misinterpreted his initial success in markets for skill. Shortly thereafter, he experienced a big loss.
To Goldman Sachs derivatives strategist Vishal Vivek, the resulting underperformance of vaccine stocks makes them a bargain right now. He highlights 13 such stocks currently being underappreciated by the market — meaning shrewd investors should go long.
“If you’re going to identify opportunity in companies that are off, you’ve got to have number one, a capital structure to get to the other side. And point number two is, when demand comes back, you have to be a winner. You have to not just merely survive, but survive to win.”
— Todd Ahlsten, manager of the top-performing Parnassus Core Equity Fund, breaking down what he looks for when hunting stock-market bargains
