Is there a Tea Party investment portfolio?

ByABC News
October 19, 2011, 8:54 PM

— -- Q: Is it possible to support conservative political views through my investing? Is there a Tea Party portfolio?

A: Mixing politics with just about anything is usually a bad idea. And that adage often applies with investing.

There's no shortage of mutual funds or investment philosophies that attempt to make some sort of political statement with their holdings. For instance, there are funds that attempt to be "socially responsible" by avoiding investing in companies that promote what are commonly deemed to be societal ills. Likewise, some investors try to do the opposite, by investing in companies that profit from drinking, smoking and other acts. The track record of this type of investment has been mixed.

Looks like you, too, are trying to make a political statement with your portfolio. Doing so is probably not advisable. Over the long term, investors' returns are largely determined by the risk and valuation of stocks. Political feelings can be fleeting and not a great thing to build your long-term portfolio, or retirement savings, on.

But with that said, there are certainly particular industries and companies that are more closely aligned with beliefs held true by many political conservatives. This isn't intended to be a political discussion of the merits or disadvantages of any type of political thinking. This column is dedicated to investing, and I'll leave the political commentary to the comments below.

The following list doesn't indicate all companies that may provide goods and services that support some aspects of conservative thinking. And most important, the inclusion of the companies in the list does not in any way indicate that the companies, executives or employees at the companies support any particular political views.

A few of the companies that make goods or services that are commonly associated with conservative political thinking include:

•Smith & Wesson (SWHC) is one of the largest sellers of guns and firearm accessories. Some political conservatives and various sections of the Tea Party are enthusiastic supporters of Americans' right to bear arms, and Smith & Wesson makes many of the guns used for both self-defense and for recreation.

•Halliburton (HAL) is at the center of many of the beliefs held close by some conservatives. The company's oil and natural gas business reinforces the idea that exploration is more important to satisfy the nation's need for energy than conservation or alternatives. In addition, the company has been involved in the reconstruction efforts in the Middle East following multiple wars there.

•General Dynamics (GD) has been instrumental in developing the nation's military might. In addition to its business aircraft unit, the company sells a wide range of combat equipment and military vehicles. General Dynamics not only makes air weapons, but also designs and builds battle tanks and naval weapons.

•Ford (F) is a leading maker of cars and trucks. Conservatives, as well as most Americans, can appreciate the fact that the company was founded and headquartered in the U.S. But what makes Ford such an appealing investment for Tea Party conservatives is the fact that Ford was the only major U.S. automaker to not accept federal bailout money in the wake of the financial crisis.

•News Corp (NWS) is a widely diversified media company. What makes it of interest to conservatives is the company's Fox television properties.

Again, just because the companies above may provide products appreciated by conservatives does not mean the companies are intentionally aiming to adhere to such principles. And more important, the above list of stocks may or may not perform well in the future. But in terms of providing products and services of interest to many conservatives, the companies above certainly qualify.

Matt Krantz is a financial markets reporter at USA TODAY and author of Investing Online for Dummies and Fundamental Analysis for Dummies. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com. Follow Matt on Twitter at: twitter.com/mattkrantz