Stocks that benefited from Republican policies edged higher, signaling that traders expecting the GOP could have higher odds of taking over both houses of Congress. Dan Clifton, head of policy research at Strategas, has built Republican and Democratic portfolios that include investments that can win or lose based on election results. . Portfolio is a diagnostic tool used to gauge how financial markets perceive the November 8 election. Democrats currently control the House of Representatives and they have an equally divided advantage in the Senate. because Vice President Kamala Harris could vote discord. “Our basket through [Thursday] Clifton said the 68 percent chance of being wiped out by Republicans. “The big drivers here are energy; healthcare, especially biotechnology and pharmaceuticals; finance, especially insurance and defense. Those are the four big areas that are really driving this. “Example: Energy Sector SPDR Fund, XLE, up 2.4% in the past week. Strategic Republican portfolio includes several energy companies including Cheniere, Centrus Energy, Enterprise Products and ConocoPhillips Clifton said Republicans would support more oil and gas production Defense companies in the GOP’s portfolio include Northrop Grumman and Lockheed Martin September 30 and Lockheed have gained 24.7% during that time. Meanwhile, the iShares Biotechnology ETF is up 9.7% since September 30. The Republican portfolio includes Regeneron, which is up 7, 5% since the end of September and Bristol-Myers Squibb, up 10.8% in the same period.Clifton said the Republican portfolio bottomed around September 7 and in October it lasted longer. “There’s a lot of confidence that the Republican interest will be quite large,” he said. “That’s a large enough majority that the House could go Republican in the 2024 election. Likelihood of that. A Democratic sweep seems less likely from these election results. “Clean energy stocks underperform. Democrat portfolio holdings First Solar and ChargePoint. ChargePoint is down 14.9% since the end of September, but First Solar is up 16%. He said: “If the consensus is wrong and the Democrats keep the Senate in place, the area that will have the most advantage is the clean energy sector, which has grown only about 0.4% since September 30.