**Navigating Portfolio Strategies in an Election Year: Expert Advice from Matt Powers**

As the election year advances and the market anticipates a rate easing cycle, investors may find themselves uncertain about the best strategies for their portfolios. Matt Powers, managing partner at Powers Advisory Group, recently joined Alexandra Canal on Wealth! to offer his insights on navigating this complex terrain. According to Powers, lower interest rates call for a focus on traditional defensive sectors such as utilities, consumer staples, and financials. However, he also warns that short-term volatility is expected, particularly as we enter October, historically the most erratic month in election years.

Highlighting specific opportunities, Powers named Target as a solid choice to weather the expected market fluctuations. "We're a dividend growth firm and that's kind of our core focus," he noted. "They [Target] have an outstanding history of growing their dividend. Their recent earnings report showed they beat estimates on both earnings per share and revenue. Target has returned to a growth mode after a prolonged period of underperformance, with digital sales increasing by 8% and in-store sales also on the rise." Powers believes these factors position Target favorably moving forward.

On the fixed-income front, Powers advised targeting intermediate durations while maintaining some short-term liquidity. "The theme is to move away from the short term and slightly extend your duration before more rate cuts," he explained. This balanced strategy aims to capture the benefits of the anticipated rate environment while maintaining flexibility.

Addressing those considering portfolio adjustments ahead of potential October volatility and the election, Powers cautioned against making hasty decisions. "Big knee-jerk changes before an election are not advisable because we can't predict the election outcome," he stated. Instead, Powers recommends a reallocation towards dividend-based investments and ETFs to gain broad-based exposure and higher yields, along with potential appreciation as funds flow into these areas.

For more expert insights and updates on market action, you can watch the full episode of Wealth! featuring Matt Powers.