Trump or Harris: how election results could affect the US stock market
The results of the US presidential election could have a significant impact on the stock market, as each candidate's policies could have different effects on different sectors of the economy.
There is no corruption in the United States, but each president pursues his own policy of lobbying for one or another sector of the economy.
Therefore, investors should be prepared that after one of the candidates wins the election, some stocks will go up, while others will begin to fall. This moment is an excellent opportunity to make money.
After Joe Biden refused to participate in the 2024 presidential election, Kamala Harris is called the most likely candidate from the Democratic Party to participate in the election race.
If Donald Trump wins
Politics and interests
- Continuation of the policy of reducing taxes for corporations.
- Reduced controls in a number of industries, including the energy sector.
- Aggressive trade policies, including tariffs on imports from China.
Potential winning sectors and companies:
Energy sector: Oil and gas companies such as ExxonMobil and Chevron could benefit from reduced regulation and support for fossil fuels.
Financial sector: Shares of banks and financial institutions such as JPMorgan Chase and Goldman Sachs are likely to rise.
Military-Industrial Complex: Arms corporations such as Lockheed Martin and Raytheon will increase production as a result of increased defense spending.
Tech Sector: Facebook and Google and other tech giants will respond with growth to the introduction of less stringent data privacy and antitrust regulations.
If Kamala Harris wins
Politics and interests:
- Increase taxes on highly profitable corporations and individuals.
- Strengthening environmental regulation and consumer protection.
- Supporting green energy and sustainable development.
- Increased social spending, including health and education.
Potential winning sectors and companies:
Green Energy: Renewable energy companies such as NextEra Energy and Tesla could see growth due to increased investment in green infrastructure.
Healthcare: Shares of UnitedHealth Group and Teladoc Health will rise if government spending on healthcare increases.
Technology sector: Companies that are involved in developing technologies for sustainability and green energy, such as Enphase Energy and SunPower, will respond well to increased demand and funding.
Infrastructure: Companies involved in the construction and modernization of infrastructure, such as Caterpillar and Vulcan Materials, will receive additional orders.
In conclusion, it should be noted that both 2024 presidential candidates support increasing military spending, so investing in shares of American weapons companies will remain profitable regardless of who wins the US elections.
During the election campaign, the market may experience increased volatility in the short term due to uncertainty and investor expectations.
Long-term consequences depend on the success of the implementation of election promises and the adaptation of businesses to new conditions.
The market tends to react to expectations and forecasts, so it is important to monitor candidates' statements and policy agendas to better understand the possible implications for various sectors and companies.