Apart from COVID-19, the presidential election is a pretty hot topic now, especially with the event just a few weeks away. Chances of Democrats taking over the House and Senate in November are rising. Per an ABC News/Washington Post national poll released on Sunday, Biden has a lead over Trump
by 12 percentage points nationally.
FiveThirtyEight offered the Democratic candidate a 10.4 percentage point average lead, while Real Clear Politics puts Biden’s average lead at 9.8 percentage points,
per an article published on Vox.com. So, investors must be interested in Biden’s political strategy and its impact on the investment world.
Against this backdrop, we highlight some of the agendas of Biden that should prompt one to adopt the investing strategies mentioned below.
Infrastructure to Soar
Joe Biden proposed a $1.3 trillion infrastructure overhaul last year. The Democratic presidential candidate’s campaign eyes investing in restoring highways, roads and bridges, while trying to boost adoption of electric vehicles and trains. His plan also calls for changing water pipes, building out rural broadband access and updating schools, among other measures.
Owens Corning ( OC Quick Quote OC - Free Report) , which is a world leader in building materials systems and composite solutions, may benefit from the move. Green Energy in Sweet Spot
Like many other democratic leaders, Biden is also a proponent of clean energy investing. Biden is forming a plan — a Clean Energy Revolution — to address the issue of climate emergency. He sees America becoming a 100%
clean energy economy by 2035 and having net zero emission by 2050.
Tax incentives for renewable energy projects such as wind and solar are due to end in 2020. Biden has pledged to extend these and support the pickup of projects like energy-efficient buildings. Biden plans to upgrade 3 million vehicles into the electric form that the government regularly purchases.
Vivint Solar Inc. could be a big beneficiary of the proposed policy. Cannabis Stocks to be on a High
Cannabis stocks gained massively last week as Democratic vice-presidential nominee Kamala Harris’ commented that a Biden administration would decriminalize cannabis at a federal level in the United States.
Canopy Growth Corporation ( CGC Quick Quote CGC - Free Report) could be a big beneficiary of the move. Consumer Staples to Remain Healthy
The federal minimum wage
has remained at $7.25 an hour since 2009, although some states have higher minimums. House Democrats in July passed the Raise the Wage Act, which would phase it up to $15 by 2025, but the plan was dissolved in the Senate as Republicans argued that higher minimum labor costs may lead to lower hiring of workers.
Whatever the case, Democrats’ demand shows that serious efforts to rev up minimum wage would be in the cards if there is a sweeping victory. This in turn may lead to greater buying power among consumers, which may end up benefiting consumer staples stocks like
Grocery Outlet Holding Corp. ( GO Quick Quote GO - Free Report) . Mid-Caps to Rule Ahead
proposing comprehensive new uses of the federal government’s regulatory and spending power to bolster U.S. manufacturing and technology firms. Biden calls for a $400 billion, four-year increase in government purchasing of U.S.-based goods and services plus $300 billion in new research and development in U.S. technology concerns, per a CNBC article. Since mid-caps have more domestic exposure than large-cap stocks, investors can bet on mid-cap stocks in the Biden era. Internet software firm Everbridge Inc. ( EVBG Quick Quote EVBG - Free Report) , which deals withMass Notification, Incident Management, IT Alerting, Safety Connection(TM), Community Engagement(TM), Secure Messaging and Internet of Things, may benefit from a Biden win. Auto Sector May Gain
Biden promises – through federal spending – to promote automakers and its suppliers. "Together, this will mean 1 million new, well-paying jobs in the American automobile industry" per Biden,
as quoted on yahoofinance. Biden played an important role in the 2009 bailouts of General Motors and Chrysler. Biden plans to upgrade 3 million vehicles into the electric form that the government regularly purchases. One can expect Tesla ( TSLA Quick Quote TSLA - Free Report) to advantage from a Biden era. Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Check out the 2020 Election Stock Report >>