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ETF Areas to Win/Lose on Falling Biden's Approval Ratings
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A new CNBC poll, conducted by the same polling firms that controls the NBC News poll, finds President Joe Biden’s overall approval rating falling to 36% among all adults, while his approval rating for handling the economy has slipped to 30% — both all-time lows for the president in CNBC polling, a NBC News article revealed.
The article published on NBC News went on to clarify that Biden’s ratings are lower than the worst scores ever for Donald Trump (37% job rating, 41% economic handling) or Barack Obama (41% job rating, 37% economic handling) during the entire phase of their presidencies, according to both the CNBC and NBC surveys.
Against this backdrop, below we highlight a few sectors and the related ETFs that could win/lose in light of this approval rating. Notably, sectors that are Biden-friendly may lose and the opposite will happen for sectors that do not conform to the policies approved by the Biden government.
Sectors Likely to Win
Oil/Energy
Unlike Trump, Biden does not support fossil fuel much. The oil/energy sector has been in great shape lately due to low supplies and geopolitical tensions. Biden’s declining approval rating will help the sector even more. Energy Select Sector SPDR Fund (XLE - Free Report) should thus be in a sweet spot.
Pharma
Biden is a Democrat and Democrats have always been vocal against the price gouging issues in the pharma sector. Thus, the current scenario bodes well for the pharma companies, benefiting SPDR S&P Pharmaceuticals ETF (XPH - Free Report) .
Sectors Likely to Lose
Infrastructure
President Joe Biden had presented a $2.3-trillion infrastructure plan to restore about 20,000 miles of roads and 10,000 bridges along with rail lines and utilities over a span of eight years. On Aug 1, 2021, Senate introduced a bipartisan infrastructure bill of $550 billion in addition to the previously approved funds of $450 billion for five years. The 2,702-page legislation is aimed at establishing the United States with the world's best economic infrastructure. Total spending may go up to $1.2 trillion if the plan is extended to eight years.
iShares U.S. Infrastructure ETF (IFRA - Free Report) was thus supposed to be benefitting from Biden’s plan. Now, with Biden’s falling popularity, the sector might find itself in trouble (read: ETFs To Play U.S. Infrastructure Overhaul).
Clean Energy
Like many other democratic leaders, Biden is a proponent of clean energy investing. Biden had formed a plan — a Clean Energy Revolution — to address the issue of climate emergency. He wants America to be a 100% clean energy economy by 2035 and have net zero emission by 2050.
The regulatory backdrop holds the wild card for the industry’s well-being. President Biden’s era in the United States was thought to be speeding up the legalization of marijuana at the federal level. In any case, nothing much happened on the legalization of marijuana so far in the Biden era. Now, a falling approval rating might hurt for the industry. ETFMG Alternative Harvest ETF (MJ - Free Report) should thus be closely-watched.
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ETF Areas to Win/Lose on Falling Biden's Approval Ratings
A new CNBC poll, conducted by the same polling firms that controls the NBC News poll, finds President Joe Biden’s overall approval rating falling to 36% among all adults, while his approval rating for handling the economy has slipped to 30% — both all-time lows for the president in CNBC polling, a NBC News article revealed.
The article published on NBC News went on to clarify that Biden’s ratings are lower than the worst scores ever for Donald Trump (37% job rating, 41% economic handling) or Barack Obama (41% job rating, 37% economic handling) during the entire phase of their presidencies, according to both the CNBC and NBC surveys.
Against this backdrop, below we highlight a few sectors and the related ETFs that could win/lose in light of this approval rating. Notably, sectors that are Biden-friendly may lose and the opposite will happen for sectors that do not conform to the policies approved by the Biden government.
Sectors Likely to Win
Oil/Energy
Unlike Trump, Biden does not support fossil fuel much. The oil/energy sector has been in great shape lately due to low supplies and geopolitical tensions. Biden’s declining approval rating will help the sector even more. Energy Select Sector SPDR Fund (XLE - Free Report) should thus be in a sweet spot.
Pharma
Biden is a Democrat and Democrats have always been vocal against the price gouging issues in the pharma sector. Thus, the current scenario bodes well for the pharma companies, benefiting SPDR S&P Pharmaceuticals ETF (XPH - Free Report) .
Sectors Likely to Lose
Infrastructure
President Joe Biden had presented a $2.3-trillion infrastructure plan to restore about 20,000 miles of roads and 10,000 bridges along with rail lines and utilities over a span of eight years. On Aug 1, 2021, Senate introduced a bipartisan infrastructure bill of $550 billion in addition to the previously approved funds of $450 billion for five years. The 2,702-page legislation is aimed at establishing the United States with the world's best economic infrastructure. Total spending may go up to $1.2 trillion if the plan is extended to eight years.
iShares U.S. Infrastructure ETF (IFRA - Free Report) was thus supposed to be benefitting from Biden’s plan. Now, with Biden’s falling popularity, the sector might find itself in trouble (read: ETFs To Play U.S. Infrastructure Overhaul).
Clean Energy
Like many other democratic leaders, Biden is a proponent of clean energy investing. Biden had formed a plan — a Clean Energy Revolution — to address the issue of climate emergency. He wants America to be a 100% clean energy economy by 2035 and have net zero emission by 2050.
Biden’s falling approval rating may hurt stocks like First Solar Inc. (FSLR - Free Report) or ETFs like Invesco Solar ETF (TAN - Free Report) and Invesco WilderHill Clean Energy ETF (PBW - Free Report) (read: Clean Energy Stocks & ETFs to Buy as Biden Gains Popularity).
Marijuana
The regulatory backdrop holds the wild card for the industry’s well-being. President Biden’s era in the United States was thought to be speeding up the legalization of marijuana at the federal level. In any case, nothing much happened on the legalization of marijuana so far in the Biden era. Now, a falling approval rating might hurt for the industry. ETFMG Alternative Harvest ETF (MJ - Free Report) should thus be closely-watched.