What about adopting this trading strategy for the US election? Sell profitable stocks now so that you'll have cash on hand to buy heavily when the election heats up this fall. This is exactly what hedge funds have been doing since May, even as the market continues to hit new highs. According to the prime brokerage division of Goldman Sachs, the net leverage ratio of hedge funds - usually seen as a barometer of risk appetite - fell to 54% in early July, the lowest level since January. Having spent two months reducing its holdings of top-performing stocks, hedge fund is now at its lowest level of exposure to technology, media, and telecommunications stocks on record. But don't mistake this for being short. On the contrary, these so-called smart money are preparing for a wild presidential election. They hope to have cash available for allocation when the stock market volatility intensifies and stock prices begin to fluctuate.