Sectors and titles of the Biden era
Joe Biden is officially the 46th president of the United States. The markets took this news quite well, and over the past 2 days have extended the rise with the Nasdaq pulling +2.89% since Wednesday. Interestingly, CNBC TV host Jim Cramer described Trump as anti-immigrant, pro-fossil fuel and very hostile to China. On Biden he had exactly opposite words instead.
With Biden there may be many changes
First, they announced anacceleration on the vaccination campaign in the States, as well as theextension of anti-Covid restrictive measures.
Thus, among the Biden-era sectors and stocks, one potentially favored sector ise-commerce, which could continue upward as additional restrictive measures loom. We could see stocks like Amazon and Walmart on the runway again . We do not underestimate the logistics transportation sector with stocks such as Fed-Ex. The fiscal stimulus promised for the new year could explode industry profits.
Another important sector is the digital sector, which includes technology and cybersecurity with related stocks involved. A safe way to invest in these sectors might be a good diversified ETF (such as those we have purchased in our premium club). Let us also not underestimate the 5G sector!
Healthcare: again Biden has reforms in mind and will try to make health insurance cheaper for Americans.
Several words have already been spent on the renewable sector and the China segment. Several stocks in our selection have crossed the 100 percent gain threshold, and we remain convinced that in a long-term operation we can still see green.
Clearly, one should not lump everything together. However, one must always be careful in selection by delving into and analyzing what one is going to buy. Increasingly, we are seeing errors in approach. For example, there are people who are perhaps undecided about buying a 50-euro household appliance, who then jump in with thousands on unknown titles, just because “everyone is buying it”!
So watch out for cucumbers around the corner!