The status quo is better for markets, says Craig Porter, portfolio manager of Front Street Capital. He manages the Renaissance Global Resource Fund and co-manages the Renaissance Optimal Inflation Opportunities Portfolio.
“The market hates uncertainty,” he says. “If Romney gets in, there will be a feeling out process.”
If Obama gets in, on the other hand, investors will feel more comfortable because they know his policies and how he does things.
But, Porter says the election isn’t his main focus when assessing buying opportunities.
“We look more at what’s going on economically around the world. For natural resources, we have to look at the end demand.
“The U.S. is one of the big players, but China is even bigger. They’re consuming 40% to 50% of the world’s aluminum, steel and cement and you have to look at what’s going on there outside of an election.”
He expects performance over the next month to be strong, even though “the major collapses have come historically in October.”
But he doesn’t put much stock in such warnings.
“It’s so difficult to time the market and get it right on a monthly basis. I’d hate to tell someone to sell in September and buy back in November, and miss a rally as a result.”