The Best Bets in Sector Investing

Despite uncertainty, bull market offers a prime opportunity to explore sector investing.

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Sectors to avoid before November 6 also include healthcare, an industry that will be deeply affected by the election outcome and the fate of President Obama's healthcare initiatives.

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The election will also have an impact of the future of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The bill, signed by the president in 2010, is still not well-understood by business owners, says Forrest, and Republican challenger Mitt Romney has vowed to repeal it.

In addition to financial companies, the bill's future could have an impact on the industrial sector, whose government reporting requirements are already changing as a result of the legislation. If it remains intact, the number of requirements will increase.

"A lot of the laws are no longer guidelines like they used to be. There's so much specificity in" Dodd-Frank, she says. "If you threw the bill at some kind of businessperson with a normal IQ, I don't know if anyone can make heads or tails of this."