We have experienced an unprecedented volatility leading to the US Elections. In fact, it was the worse period for the US Indices proceeding the elections, especially for mega-caps of $NSDQ100 The $SPX500 also suffered greatly as did $DJ30
Biden is leading in the polls, around 51 to 44% from the latest Bloomberg Data.
Now, I need to highlight, that this post focuses on the impact on the stock market, rather than the politics or even purely about economy. You should consider this when reading the following bullet points.
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🔹️ GREEN ENERGY: From the market standpoint, this has been the sector that benefited the most. We have already seen 200% growth in some of the stocks.
🔹️ MEGA CAPS: As much as Mr. Trump is good for the market, Biden is bad for mega caps. I think we have all seen that very clearly in the past week. He’d love to break them all as they are too “powerful”. He’d also like to tax the hell out of the rich and then distribute to the poor. True Robinhood.
🔹️ MARIJUANA: $HMMJ is 9% up today. That should say it all. Biden is good for this business with huge potential.
🔹️ $USDOLLAR will likely weakens, as Biden will likely devalue it with his injections into healthcare and renewables. He will likely be less stringent on $China50 which is perhaps good for them, but not necessarily for the US. Should good for Europe and $EUSTX50 as well.
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🔹️ GOOD FOR WALL STREET: I still remember when Trump won the Election last time and the market just went crazy. It was really the first President who came from pure business background and, as much as he was laughed at, he knew how to get things done. Shall he win again, which is not that likely, the markets will probably love it, also due to point 2 and, obviously, the tax policy.
🔹️ STIMULUS: As we’ve seen already, the President is not afraid of pumping money into the system. Shall he win, the next stimulus is likely to be put in place quickly. Then he will be able to advertise that he took the fresh Presidency and did so well.
🔹️ $OIL : Although Oil will likely grow regardless of who wins, it will likely be even better shall Trump win, due to the green energy focused discussed before. To be sure, there is enough demand for at least the next 5 years, so no worries here.
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Personally, I think that eventual Trump victory would be good for the US Stock Market (without entering larger discussion which is beyond the scope of one post). Shall Biden win, the solar, Tesla , Marijuana and perhaps Healthcare stocks should benefit.
This will be a very interesting Election and I will be watching impatiently to see how it will pan out and the subsequent reaction of the stock market.
Thanks for taking the time to read this post.
With very best regards,
MJ
Marcin Jasinski
Entrepreneur & CEO Advisor
+352 661 10 80 10
Portfolio and Wealth Management
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