A bull market will boom no matter the president — but skew your portfolio based on who wins, Morgan Stanley's investment chief says

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A bull market will boom no matter the president — but skew your portfolio based on who wins, Morgan Stanley's investment chief says
Bloomberg TV
  • Morgan Stanley's Mike Wilson told CNBC on Tuesday that there will be a bull market after the election no matter who wins the presidency.
  • The chief investment strategist predicted that regardless of the party in control, there will be another stimulus bill, which would be good for markets in the short term.
  • In the long term, the election outcome "matters a ton," Wilson said, and investors will want to skew their portfolios accordingly.
  • He added that sectors like energy and financials might suffer with a Democratic sweep.
  • Visit Business Insider's homepage for more stories.
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Morgan Stanley's Mike Wilson told CNBC on Tuesday that while there will be a bull market after the election regardless of who wins the presidency or control of Congress, investors will want to skew their portfolios depending on the outcome.

The chief investment strategist said that "ultimately the politicians will have to cave" and release another stimulus plan before or shortly after the election. Markets know this, he said, and that's why he doesn't think the outcome of the election will matter in the short term.

"We're in a recession still. We're in a pandemic ... It's going to be very difficult for either side to avoid those facts," Wilson said. "And what that means is we're going to get more spending from Congress."

Read more: The CEO of a $41 billion money manager says there will be 'bountiful buying opportunities' with higher volatility heading into year-end — and shares 4 high-dividend-paying stocks to play this market

However, in the longer term, the election outcome "matters a ton for policy" and will be "more felt at the sector level," Wilson said.

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He said that with a Democratic sweep, financial and energy stocks could face more regulation and might not perform as well as other sectors. Technology stocks, however, might fare better than some expect, as Democrats "won't be as tough" on tech regulation.

In Monday's episode of Morgan Stanley's "Thoughts on the Market" podcast, Wilson said the economic recovery would continue into 2021 and told investors to focus on stocks in sectors most levered to an ongoing recovery, like those in consumer cyclicals, services, materials, industrials, and financials.

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