Fund managers seek stocks benefiting from Democratic gains in 2018 U.S. electionsNEW YORK (Reuters) - The surprise victory by Democrats in Tuesday’s Alabama election for a U.S. senator is prompting fund managers to prepare for more losses by the Republican party in the 2018 mid-term Congressional elections.  Fund managers from Federated Investors, Wells Fargo, James Funds and LPL Financial are among those that are moving into the shares of retailers, banks, industrials and technology firms that may benefit from strong global economic growth abroad and tax cuts for high income wage earners at home, even if the Democratic party makes gains in next year’s elections.  With a strong economy, continuing deregulation by the administration of President Trump, and the benefits of corporate tax cuts expected to be passed by the Republican-led Congress in coming days, cyclical companies ranging from Amazon.com Inc (AMZN.O) to Allstate Corp (ALL.N) will outperform as long as Washington stays out of the way, according to fund managers.  “Tax reform was the big thing from an economic perspective, and if I’ve got it then I’ve got it. If this (next year’s election) makes it harder for Republicans to pass an immigration bill or trade restrictions then that’s even better” because it reduces threats to global economic growth, said Steven Chiavarone, a portfolio manager at Federated Investors in New York, which has $363 billion in assets under management.  As a result, Chiavarone is holding on to large-capitalization technology stocks like Apple Inc (AAPL.O) and Amazon, despite each company’s stock gaining more than 45 percent for the year to date, because he expects them to be the largest beneficiaries of the global economic expansion.  “You are going to have more money in the pockets of both consumers and of corporations, and these companies are most exposed to where that money will be spent,” he said. Historically, the U.S. stock market has done well during periods when opposing political parties have control of the presidency and at least one house of Congress. This time, however, the more influential factor looks to be the strength of the global economy.  In the U.S, the economy grew at its fastest pace in three years during the third quarter this year, while the economy of the eurozone is on pace for its largest expansion in a decade. In October, the International Monetary Fund raised its outlook for global economic growth to a rate of 3.7 percent in 2018, helping to push emerging market stocks up to six-year highs.  “We haven’t had anything like this on a global growth scale since 2010,” said Ryan Detrick, senior market strategist for LPL Financial, which has $560 billion in assets under management. “Against that backdrop, more gridlock in Washington is not a bad thing, because you won’t have any extreme moves one way or another.” Detrick expects cyclical value stocks, especially financials and industrials, to outpace the market in the year ahead as the Federal Reserve continues to raise interest rates and corporations start to increase their capital expenditures.  Financial stocks slightly outperformed the broad market on Wednesday following the victory in the Alabama election by Democrat Doug Jones, with the Financial Select SPDR Fund (XLF.P), a measure of financial companies in the benchmark S&P 500 stock index, gaining 0.3 percentage points while the index as a whole was little changed.  The move to invest in stocks that might benefit from gridlock in Washington D.C., if the Democrats regain at least one house in Congress next year, is a reversal from a year ago, when fund managers piled into infrastructure, defense and small-capitalization stocks in anticipation of Republican legislative victories in the 2016 elections.   Dubbed the ‘Trump Trade’ last year, the move helped push the U.S. dollar up to multi-year highs and sent the broad S&P 500 index up more than 10 percent between November and March this year. Now, however, fund managers are looking at companies that can benefit even if Republicans are not able to legislate in Congress.  Barry James, portfolio manager of the $3 billion James Balanced Golden Rainbow fund, is also moving into financial stocks such as Allstate and Capital One Financial Corp (COF.N) because he expects the Trump administration to continue to reduce regulations in the industry, a policy that it can continue if Republicans lose one or both houses of Congress.  At the same time, he is increasing his position in retail companies such as Best Buy Co Inc (BBY.N) and Target Corp (TGT.N) that get the majority of their revenues in the U.S. and are well-positioned to benefit from the Republican-led corporate tax cut likely to be passed soon.  He expects that Democrats will win at least at least one house of Congress in 2018, limiting the impact of Washington on the stock market until the presidential election in 2020.  “It’s looking more and more like the tax plan will be the one legislative victory that Republicans will have, and there won’t be anything else out of Washington unless it is truly bi-partisan,” he said. politicsNews
fund managers seek stocks benefiting democratic gains electionsnew york reuters the surprise victory democrats tuesday alabama election senator prompting fund managers prepare losses republican party congressional elections fund managers generated investors wells cargo james funds pl financial among moving shares retailers banks industrial technology firms may benefit strong global economic growth abroad tax cuts high income wage earners home even democratic party makes gains next year elections with strong economy continuing deregulation administration president trump benefits corporate tax cuts expected passed congress coming days cyclical companies ranging inc allocate corp outperform long washington stays way according fund managers tax reform big thing economic perspective i got i got if next year election makes harder republicans pass immigration bill trade restrictions even better reduces threats global economic growth said steven chiavarone portfolio manager generated investors new york billion assets management as result chiavarone holding technology stocks like apple inc amazon despite company stock gaining percent year date expects largest beneficiaries global economic expansion you going money pockets consumers corporations companies exposed money spent said historically stock market done well periods opposing political parties control presidency least one house congress this time however influential factor looks strength global economy in economy grew fastest pace three years third quarter year economy eurozone pace largest expansion decade in october international monetary fund raised outlook global economic growth rate percent helping push emerging market stocks highs we anything like global growth scale since said ryan derrick senior market strategist pl financial billion assets management against backdrop gridlock washington bad thing extreme moves one way derrick expects cyclical value stocks especially financials industrial outrage market year ahead federal reserve continues raise interest rates corporations start increase capital expenditures financial stocks slightly outperformed broad market wednesday following victory alabama election democrat doug jones financial select spur fund measure financial companies benchmark s p stock index gaining percentage points index whole little changed the move invest stocks might benefit gridlock washington democrats regain least one house congress next year reversal year ago fund managers piled infrastructure defense stocks anticipation republican legislative victories elections dubbed trump trade last year move helped push dollar highs sent broad s p index percent november march year now however fund managers looking companies benefit even republicans able legislate congress barry james portfolio manager billion james balanced golden rainbow fund also moving financial stocks allocate capital one financial corp expects trump administration continue reduce regulations industry policy continue republicans lose one houses congress at time increasing position retail companies best buy co inc target corp get majority revenues benefit corporate tax cut likely passed soon he expects democrats win least least one house congress limiting impact washington stock market presidential election it looking like tax plan one legislative victory republicans anything else washington unless truly said politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Fund managers seek stocks benefiting from Democratic gains in 2018 U.S. electionsNEW YORK (Reuters) - The surprise victory by Democrats in Tuesday’s Alabama election for a U.S. senator is prompting fund managers to prepare for more losses by the Republican party in the 2018 mid-term Congressional elections.  Fund managers from Federated Investors, Wells Fargo, James Funds and LPL Financial are among those that are moving into the shares of retailers, banks, industrials and technology firms that may benefit from strong global economic growth abroad and tax cuts for high income wage earners at home, even if the Democratic party makes gains in next year’s elections.  With a strong economy, continuing deregulation by the administration of President Trump, and the benefits of corporate tax cuts expected to be passed by the Republican-led Congress in coming days, cyclical companies ranging from Amazon.com Inc (AMZN.O) to Allstate Corp (ALL.N) will outperform as long as Washington stays out of the way, according to fund managers.  “Tax reform was the big thing from an economic perspective, and if I’ve got it then I’ve got it. If this (next year’s election) makes it harder for Republicans to pass an immigration bill or trade restrictions then that’s even better” because it reduces threats to global economic growth, said Steven Chiavarone, a portfolio manager at Federated Investors in New York, which has $363 billion in assets under management.  As a result, Chiavarone is holding on to large-capitalization technology stocks like Apple Inc (AAPL.O) and Amazon, despite each company’s stock gaining more than 45 percent for the year to date, because he expects them to be the largest beneficiaries of the global economic expansion.  “You are going to have more money in the pockets of both consumers and of corporations, and these companies are most exposed to where that money will be spent,” he said. Historically, the U.S. stock market has done well during periods when opposing political parties have control of the presidency and at least one house of Congress. This time, however, the more influential factor looks to be the strength of the global economy.  In the U.S, the economy grew at its fastest pace in three years during the third quarter this year, while the economy of the eurozone is on pace for its largest expansion in a decade. In October, the International Monetary Fund raised its outlook for global economic growth to a rate of 3.7 percent in 2018, helping to push emerging market stocks up to six-year highs.  “We haven’t had anything like this on a global growth scale since 2010,” said Ryan Detrick, senior market strategist for LPL Financial, which has $560 billion in assets under management. “Against that backdrop, more gridlock in Washington is not a bad thing, because you won’t have any extreme moves one way or another.” Detrick expects cyclical value stocks, especially financials and industrials, to outpace the market in the year ahead as the Federal Reserve continues to raise interest rates and corporations start to increase their capital expenditures.  Financial stocks slightly outperformed the broad market on Wednesday following the victory in the Alabama election by Democrat Doug Jones, with the Financial Select SPDR Fund (XLF.P), a measure of financial companies in the benchmark S&P 500 stock index, gaining 0.3 percentage points while the index as a whole was little changed.  The move to invest in stocks that might benefit from gridlock in Washington D.C., if the Democrats regain at least one house in Congress next year, is a reversal from a year ago, when fund managers piled into infrastructure, defense and small-capitalization stocks in anticipation of Republican legislative victories in the 2016 elections.   Dubbed the ‘Trump Trade’ last year, the move helped push the U.S. dollar up to multi-year highs and sent the broad S&P 500 index up more than 10 percent between November and March this year. Now, however, fund managers are looking at companies that can benefit even if Republicans are not able to legislate in Congress.  Barry James, portfolio manager of the $3 billion James Balanced Golden Rainbow fund, is also moving into financial stocks such as Allstate and Capital One Financial Corp (COF.N) because he expects the Trump administration to continue to reduce regulations in the industry, a policy that it can continue if Republicans lose one or both houses of Congress.  At the same time, he is increasing his position in retail companies such as Best Buy Co Inc (BBY.N) and Target Corp (TGT.N) that get the majority of their revenues in the U.S. and are well-positioned to benefit from the Republican-led corporate tax cut likely to be passed soon.  He expects that Democrats will win at least at least one house of Congress in 2018, limiting the impact of Washington on the stock market until the presidential election in 2020.  “It’s looking more and more like the tax plan will be the one legislative victory that Republicans will have, and there won’t be anything else out of Washington unless it is truly bi-partisan,” he said. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: fund managers seek stocks benefiting democratic gains electionsnew york reuters the surprise victory democrats tuesday alabama election senator prompting fund managers prepare losses republican party congressional elections fund managers generated investors wells cargo james funds pl financial among moving shares retailers banks industrial technology firms may benefit strong global economic growth abroad tax cuts high income wage earners home even democratic party makes gains next year elections with strong economy continuing deregulation administration president trump benefits corporate tax cuts expected passed congress coming days cyclical companies ranging inc allocate corp outperform long washington stays way according fund managers tax reform big thing economic perspective i got i got if next year election makes harder republicans pass immigration bill trade restrictions even better reduces threats global economic growth said steven chiavarone portfolio manager generated investors new york billion assets management as result chiavarone holding technology stocks like apple inc amazon despite company stock gaining percent year date expects largest beneficiaries global economic expansion you going money pockets consumers corporations companies exposed money spent said historically stock market done well periods opposing political parties control presidency least one house congress this time however influential factor looks strength global economy in economy grew fastest pace three years third quarter year economy eurozone pace largest expansion decade in october international monetary fund raised outlook global economic growth rate percent helping push emerging market stocks highs we anything like global growth scale since said ryan derrick senior market strategist pl financial billion assets management against backdrop gridlock washington bad thing extreme moves one way derrick expects cyclical value stocks especially financials industrial outrage market year ahead federal reserve continues raise interest rates corporations start increase capital expenditures financial stocks slightly outperformed broad market wednesday following victory alabama election democrat doug jones financial select spur fund measure financial companies benchmark s p stock index gaining percentage points index whole little changed the move invest stocks might benefit gridlock washington democrats regain least one house congress next year reversal year ago fund managers piled infrastructure defense stocks anticipation republican legislative victories elections dubbed trump trade last year move helped push dollar highs sent broad s p index percent november march year now however fund managers looking companies benefit even republicans able legislate congress barry james portfolio manager billion james balanced golden rainbow fund also moving financial stocks allocate capital one financial corp expects trump administration continue reduce regulations industry policy continue republicans lose one houses congress at time increasing position retail companies best buy co inc target corp get majority revenues benefit corporate tax cut likely passed soon he expects democrats win least least one house congress limiting impact washington stock market presidential election it looking like tax plan one legislative victory republicans anything else washington unless truly said politicsnews