By: David Emami
(Original article available here)
On November 5, the Monday before the election I wrote this article with a few suggestions of stocks which should outperform the S&P 500 in the short to intermediate term depending on who won the election. I wrote "Stocks to consider if Obama wins: TSLA, FSLR, PZD, NVS, SNY, TEVA" Below, I will review the performance of my picks in the event of an Obama victory.
1) TSLA- Tesla Motors Inc.
In the month immediately following the election, TSLA was up 17.92% compared to only 0.6% for the S&P 500. In the last 6 months since the election, TSLA is up 175%, compared to 17% for the S&P 500.
Below is an interactive chart comparing the performance of TSLA to the S&P 500.
2) FSLR, or First Solar is up 117% in the 6 months since the election. Compared to 17% for the S&P 500
In the month immediately after the election, FSLR returned 31.7% compared to .6% for the S&P 500.
3) PZD, the Cleantech ETF, returned 21% in the 6 months since the election. In the month immediately after the election, PZD returned a modest 1.25%, still outperforming the general market.
In the month immediately following the election, all 3 outperformed the S&P 500,with TEVA up 2%, SNY up 5.6% and NVS up 3.8%. In the 6 months since the election, TEVA is down 3.5%, SNY is up 26.48% and NVS is up 24.21%.
So ultimately, of my six recommendations, five of them outperformed the S&P 500, and two (TSLA and FSLR) turned into real home runs. TEVA underperformed due to company specific issues. That is the purpose of a portfolio however, to diversify idiosyncratic risk.