Election Portfolio, Series 9
In November 2016, the United States elected our 45th President. While most voters focus on the current state of affairs when casting their ballots in presidential elections, equity investors tend to
concentrate on the impact the election will have on fiscal and monetary policy that can influence future economic growth. Since the 2016 election, we’ve seen a series of policy changes including
deregulation and the passing of the most far-reaching tax reform since the 1980s. Because of the policies that have already been put in place, the IMF continues to anticipate economic growth to
reach 2.9% in 2018 compared to 1.6% in 2016 and 2.2% in 2017.
As we reach the half way point of the President’s term, the country completed the mid-term elections on November 6th and the results produced a divided government with a Republican president,
Republican majority U.S. Senate and Democrat majority U.S. House of Representatives. This shift in the balance of power in Congress could affect market performance and which sectors could have
strong relative value and growth potential. Historically, looking back 60 years to the election of 1958, the S&P 500 Index has performed better during periods of divided government.1While markets
have been volatile leading up to the mid-term elections, uncertainty should start to fade as corporations have a better idea of what to expect from Congress in the coming two years.
1 Investor’s Business Daily
We anticipate the following sectors have the potential to perform well under the
current divided government now that the Democrats have won the House.
- Communication Services
- Health Care
- Information Technology
- U.S. Infrastructure
This unit investment trust seeks above-average capital appreciation; however, there is
no assurance the objective will be met.
You should consider the portfolio's
investment objectives, risks, and charges and
expenses carefully before investing.Contact
your financial advisor or call First Trust
Portfolios, L.P. at 1.800.621.1675 to
request a prospectus, which contains this
and other information about the portfolio.
Read it carefully before you invest.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
An investment in this unmanaged unit investment trust should be made with an understanding
of the risks involved with owning common stocks, such as an economic recession and the possible
deterioration of either the financial condition of the issuers of the equity securities or the general
condition of the stock market.
You should be aware that an investment that is concentrated in stocks in the health care sector
involves additional risks, including limited diversification. The companies engaged in the health
care sector are subject to fierce competition, high research and development costs, governmental
regulations, loss of patent protection, and changing consumer spending trends. In addition, the
Health Care and Education Affordability Reconciliation Act of 2010 has had and will continue to
have a significant impact on the health care sector.
The value of the securities held by the trust may be subject to steep declines or increased volatility
due to changes in performance or perception of the issuers.
Although this portfolio terminates in approximately 15 months, the strategy is long-term.
Investors should consider their ability to pursue investing in successive portfolios, if available.
There may be tax consequences unless units are purchased in an IRA or other qualified plan.
An investment in a portfolio containing small-cap and mid-cap companies is subject to
additional risks, as the share prices of small-cap companies and certain mid-cap companies are
often more volatile than those of larger companies due to several factors, including limited
trading volumes, products, financial resources, management inexperience and less publicly
As the use of Internet technology has become more prevalent in the course of business, the trust
has become more susceptible to potential operational risks through breaches in cyber security.