Heading into November's U.S. presidential election, professional investors agree on one strategy — diversification remains key.
Diversification to hedge tax rate risk FBB Capital Partners' Mike Bailey said that should former President Donald Trump win, his tax cuts might mean better overall prospects for equities.
Bailey emphasized that while his investment strategy avoids predicting macroeconomic events and timing the market, Depending on the election's outcome, there could obviously be different results for investors, investors could find it helpful to look at the extreme outcomes of the election.
He recommended diversifying across different asset classes, since higher tax rates could lead to downside in the equity market.
"If tax rates change, I don't think bonds are going to move that much, so you're pretty safe on that side," he said.
Persons:
Mike Bailey, Donald Trump, Bailey, Tesla, John Davi, we're, Davi, You've, it's, Kumar
Organizations:
November's U.S, Nasdaq, Federal Reserve, Dow Jones, CNBC Pro, Wall, Capital Partners, CNBC, Astoria, Komal, Sri, Kumar
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U.S, —, China, Mexico