For the First Time, We at Stallion Asset have revealed our model Portfolio.
This Morning We had a Query by one of our Clients regarding how will the outcome of the US Election affect our Portfolio.
Lets First look at the history of Sensex Returns with Various Presidents. We have presented data for 9 Elections from 1981 as Sensex started in 1979. The US Polls are on the 8th of November 2016 and the Race is between Donald Trump for the Republicans and Hillary Clinton for Democrat.
As Data suggest,In last 36 years we haven’t had any negative returns in any Presidential Cycle (4 Years).
The Republicans have been better for Sensex compared to Democrats.
Coming to the Main Part of the Topic, does all this matter for a Equity Investor?
I certainly believe it doesn’t matter to Anyone except TRP Rating of Media Companies. In the coming day there will be a massive hype about what will happen to the World and Capital Markets if Donald Trump becomes President, i personally believe unless you have exposure to IT Stocks, you shouldn’t care much.
Peter Lynch in his Book One up on Wall Street Writes ” Buy a Business that a Fool can Run, because someday one will”.
Warren Buffet when asked in 2005 about president’s role to economy said “We’ve had all sorts of bad Presidents, but have still done well. Our real GDP per capital rose seven-fold in the last century, which is remarkable.”
We Reveal our Model Portfolio for the first time. In the Below Charts you can see that our Exposure to International markets is very less. We remain extremely Confident on the Prospects of companies we have investments in whether it is Hillary or Trump who wins it.
Conclusion – Time has taught me that it makes sense to have a consistent strategy in place and be away from Noise.