The U.S. presidential election will likely be a major stock market catalyst. Traders are already trying to identify the best “Biden stocks” or “Trump stocks” that could rally depending on the election outcome.

At the same time, some investors may prefer to avoid the election-related volatility altogether. New Constructs founder David Trainer recently compiled a list of five stocks that have attractive risk profiles, large cash balances and leading market shares.

Trainer said these five stocks are the closest thing to election-proof investments in the market today.

Related Link: How GDP Growth Under Trump Compares To Clinton, Obama And Other Presidents

Election-Proof Stocks: Trainer likes JPMorgan Chase & Co. (NYSE: JPM) because of its excellent balance sheet. The company has also proven in can grow profits even in a near-zero interest rate environment.

Shares of shopping mall REIT Simon Property Group Inc (NYSE: SPG) have understandably taken a 58.9% hit in 2020. Yet, Trainer said Simon’s net operating profit after tax rebounded by 37% in 2010 following the last U.S. recession, and he believes the company is positioned for a similar rebound in 2021.

The housing market has been red-hot following an emergency interest rate cut by the Federal Reservein March. Trainer said D. R. Horton Inc (NYSE: DHI) is particularly well-positioned in the housing boom given that more than two-thirds of its inventory serves an underserved market for homes under $300,000.

A sharp drop in travel due to the pandemic has negatively impacted chocolate giant Hershey Co (NYSE: HSY).

Its recent acquisitions of SkinnyPop, Pirate Booty and ONE Brands have the company well-positioned to thrive in the long-term, Trainer said.

Finally, insurance giant Allstate Corp (NYSE: ALL) is a defensive play heading into the election, he said.

The property-and-casualty insurance industry has been relatively insulated from the pandemic, and Trainer said Allstate has been particularly disciplined in its underwriting.

Benzinga’s Take: If the stock market as a whole continues to drop like it has in the weak heading into the election, even most high-quality stocks will be along for the ride as well.

Investors should plan to either buy the potential dip or focus more on the long-term picture and be prepared to weather an extremely volatile few months, especially if the election outcome is contested.

Latest Ratings for JPM

View More Analyst Ratings for JPM
View the Latest Analyst Ratings

See more from Benzinga

• Click here for options trades from Benzinga

• Here's How Much Investing ,000 In JPMorgan At Great Recession Lows Would Be Worth Today

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.