The status quo is better for markets, says Craig Porter of Front Street Capital. So, an Obama victory would help reassure investors.

Oil prices critically affect the North American economy, but what if they went down? “We’d be happy with $85-to-$90 a barrel,” says Craig Porter, a resource fund manager from Front Street Capital.

Canada is a resource-rich nation, and such stocks make up about half the S&P/TSX Index. Yet “resources are only really meant to be 5%-to-10% of your portfolio,” says Craig Porter, fund manager at Front Street Capital. So when tides change for resource stocks, they change for our economy.

The market wants big cap names for their liquidity, but mid-sized and junior resource plays offer tremendous upside.