Looking at all possible outcomes in these crazy times, it’s a good idea to take a look at some Biden stocks that might do well if he truly takes the presidency. While the media has called the election, states have not yet certified the results, and litigation, recounts. Potential road blocks are in place to be sorted out before we can start counting chickens hatching. With that said, lets focus on the American economy and the global financial markets to see what the markets reaction will be below.
The idea that stock markets perform better under certain Presidents or parties is a complete fallacy, and frankly, gives the sitting President a little too much credit for their impact on the markets. Not that they are not influential, but the President himself is not behind the ebbs and flows of the global financial markets. The stock market both surged and plummeted under President Trump and the bull market that we experienced was actually inherited from the previous Obama regime. The dotcom crash in 2000 was under President Clinton and the Democrats, while the mortgage crisis in 2008 was under President Bush and the Republicans.
A Biden Presidency and The Stock Market?
So what does a Biden presidency mean for the short-term markets that have been nothing short of volatile during 2020. We should see an initial surge as hope of the next stimulus package should be renewed. The Democrats already proposed a stimulus in the area of $2.2 billion in October but never made it past the Senate. President Trump delayed negotiations over the stimulus package until after the election, and now that Biden has been elected in, it should be one of his first moves. It is no secret that President Trump’s policies were friendlier to big businesses and the mega-wealthy one-percent. Biden should introduce financial policies that assist the rest of society, which includes raising the Federal minimum wage levels and supporting visible minorities and their communities.
One of the biggest issues that Biden ran his platform on was the shift in focus from fossil fuels to clean energy. This green wave as it is called, revolves around a $2 trillion investment into clean energy and renewable resources. President Trump on the other hand supported the coal industry and the big oil companies. At times it seemed like this election was personal between the two men, and in reality, we may never have seen two more contrasting Presidents. Let’s take a look at a few stocks that should thrive under the Biden regime.
Biden Stocks to Watch
Tesla (NASDAQ:TSLA): The no-brainer. Tesla has been one of the hottest stocks all year up nearly 360% year to date. The reach and success of Tesla would most likely happen under any President. But given Biden’s green lean, and commitment to shifting to clean energy, Tesla has a much more direct path to success now. Several states have already committed to the electric vehicle craze as California and New York have invested in installing electric vehicle charging stations en masse. New York is also planning to have a carbon free public transportation system by 2040, and California will ban the sale of gasoline-powered vehicles by 2035.
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While most of us think of cars when we think of Tesla, it is just as much an energy company as it is a car company. Biden has doubled down on renewable resources as well and that bodes well for the solar power branch of Tesla, which could be expanding to homes around the country in the near future. Tesla also stands to gain when it launches its Tesla Semi which should be the industry leader in the zero emission long-haul trucking sector. Blue or red, the future for Tesla and its investors was always going to be bright, but Tesla now has two trillion reasons to continue its dominance in the clean energy industry.
Switchback Energy (NYSE:SBE): If you haven’t heard of this stock it is nothing to be ashamed about. Switchback Energy is actually the SPAC IPO name for the reverse merger with ChargePoint, a California-based company that builds, you guessed it: charging stations. The company is anticipated to have over 165,000 electric vehicle charging stations around the world including the United States, Canada, Mexico, and Australia. The total addressable market for ChargePoint is quite literally the world, but expect huge leaps in the United States under the Biden administration. Watch for a golden cross on the stock to go long.
Coronavirus Vaccine Stocks:
Biden has already said the first thing on his to do list when he is sworn in as President is to get the COVID-19 pandemic under control in the United States. Recently, America has hit all-time highs with over 100,000 new cases each day over the past week. While issuing a lockdown has been a difficult task in America, Biden has emphasized that his focus will be on science in defeating the coronavirus. This probably leans more towards producing vaccine candidates, rather than shutting down the American economy once again.
Companies like Moderna (NASDAQ:MRNA), Gilead Sciences (NASDAQ:GILD), Johnson & Johnson (NYSE:JNJ), Novavax (NASDAQ:NVAX), and Pfizer (NYSE:PFE) could all see a boost here as the urgency of Operation Warp Speed is sent into hyperspace. All of these companies are in final stage clinical trials or have already had a vaccine candidate approved by the FDA. With that being said look for the American Government to invest heavily in some or all of these firms. I’d also take a long hard look at these facemask stocks as we are likely to be wearing them a long time.
Health Care Stocks:
United Health (NYSE:UNH): With the Democrats back in power, the health industry is going to be near the top of the agenda for President Biden and Vice President Kamala Harris. Biden was a huge proponent of ACA or the Affordable Care Act, under President Obama, and will likely build upon that to bring healthcare to the people in the form of public medical plans. Any guess on who would benefit from this? United Health Care is the largest healthcare company by revenue in the world and it saw a near 30% spike after ACA was originally introduced by President Obama. Other points like lowering pharmaceutical prescription prices should have an immediate impact on United Healths costs and factor into the medical industry behemoth bottom line.
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The Tele-Med Industry:
Hello? Telehealth stocks? If more American citizens are accessing affordable healthcare, look for more doctors and hospitals to provide consultations and visits via everyone’s new favorite mode of communication: Video calls. Industry leader Teladoc (NYSE:TDOC) has been one of the winners of the coronavirus pandemic and as the world continues down a path of less in-person visits, the company’s usage should boom. Teladoc is also joining forces with Livongo in a partnership that should lockdown the virtual medical care industry. A renewed focus on affordable healthcare means more usage for people in lower-income communities as well as rural towns. Companies like Teladoc as well as Google-backed Amwell (NYSE:AMWL) should thrive in our new normal of a virtual doctor’s office.
The Biden Affect on China Companies Stock:
Now lets talk about the elephant in the room in American politics. China. These stocks stand to gain immensely under a Biden regime rather than a second term from President Trump. The much publicized battle between President Trump and TikTok was long and dragged out, and you can bet the Chinese government will remember that. Not that Biden is pro-China, but it is doubtful that he will go out of his way to attack China as President Trump was known to do. The “China Flu” terminology that President Trump publicly used probably did not make him any friends in the Asian country,. So Biden would be smart to distance himself from any of the controversial things that President Trump has said in the past.
There should, in any event, be a period of de-Trumping in terms of foreign affairs, and countries like China should welcome a change to the leader of the free world. Companies like Tencent (TCEHY), Nio (NYSE:NIO), and AliBaba (NYSE:BABA), should remain on investor’s radars and American investors can be reassured that there is a likely chance that these companies will not de-list from the NYSE.
Biden Security Stocks
Axon Enterprise (NASDAQ:AAXN): You may know this company more by its previous name, Taser. This one is a long shot but bear with us here. Both President Biden and Vice President Harris are staunchly in favor of federal gun control and eliminating mass shootings caused by unnecessarily owned civilian assault rifles. They should, in theory, make stricter regulations on how guns and ammunition are obtained. Vice President Harris is a strong advocate for visible minorities, especially the African American community.
What has been at the forefront of social injustices this year? Police brutality. Axon is a company that builds and creates police weaponry, protection, and devices. With a national eye on police brutality and gun control, why would there not be a shift in focus to non-lethal methods of detaining individuals, rather than shooting to kill. The Axon CEO envisions an America with policing without killing by 2030 and is creating the technology to make this happen. Can we envision a more peaceful America over the next four years? Hopefully. Axon can help reduce unnecessary civilian deaths and investors in the Arizona-based company should thrive. Thanks for reading our Biden stocks post. As a reminder be sure to take our free stock training courses so you are always using the technicals and not emotions to dictate your trading! Check out Cobra Trading if you’re looking for a broker to trade all of these stocks mentioned above!