The first and long-awaited debate between current President Donald Trump and his opponent and candidate Joe Biden has taken place. This debate has been called quite ridiculous in American newspapers, but we will not deal with that today. According to polls, Biden still remains favored over Trump with a “slight” 54.4 percent.
What do we really care about? Market. How might he respond to a Trump defeat?
Let’s look at some stocks and ETFs that would do great if Biden becomes the new president of the States.
As we have all known for some time, Trump does not have great chemistry with China. A Biden victory could mean “unlocking” those stocks that have been somewhat burdened by Trump’s policies. Xiaomi and Tencent come to mind. In general, I think theMSCI China ETF might be a good bet. One consequence could be seen in the Tech sector. In fact, this sector could benefit from the less regulation imposed by Trump on Chinese companies. Why? Simple, most Tech components are made in China. Tesla itself could take advantage of this, as it had had a clash with the Trump administration over the China issue.
Biden and the green economy
Tech is not the only sector. Biden is very focused on renewable. As a result, stocks and ETFs that focus on renewable would have an advantage. ALPS Clean Energy ET F , Invesco Solar ET F and VanEck Vectors Low Energy ETF are just a few of them. Zero-emission vehicles are also a priority of Biden’s (make your own considerations).
It would all seem rosy. But Biden would go on to oppress other sectors. The Energy sector (oil for example), the health care sector, and the financial sector. On the latter Biden would propose an increase in Capital Gain taxes.
In yesterday’s day we saw some Chinese stocks doing very well. Could this be a signal that the market is anticipating us? In my opinion, it is still early. Surprises with Trump are around the corner.
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