Trump or Harris: How the election results could impact the US stock market
The results of the US presidential election can significantly impact the stock market, as each candidate's policies can have different implications for 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 for the possibility that after one candidate wins the election, some stocks will rise while others will fall. This represents an excellent opportunity to profit.
After Joe Biden dropped out of the 2024 presidential race, Kamala Harris is being touted as the Democratic Party's most likely candidate to run.
If Donald Trump wins
Politics and Interests
- Continuation of the policy of reducing taxes for corporations.
- Reduced control 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 manufacturing corporations such as Lockheed Martin and Raytheon will increase production as a result of increased defense spending.
Tech sector: Facebook, 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:
- Increasing taxes on high-income corporations and individuals.
- Strengthening regulation in the field of ecology and consumer protection.
- Supporting green energy and sustainable development.
- Increasing social spending, including health care and education.
Potential winning sectors and companies:
Green Energy: Renewable energy companies like NextEra Energy and Tesla could see growth due to increased investment in green infrastructure.
Healthcare: UnitedHealth Group and Teladoc Health shares will rise if government health care spending increases.
Technology sector: Companies involved in developing sustainability and green energy technologies, such as Enphase Energy and SunPower, will respond well to increased demand and funding.
Infrastructure: Infrastructure construction and modernization companies such as Caterpillar and Vulcan Materials will receive additional orders.
Finally, it should be noted that both 2024 presidential candidates support increased military spending, so investing in shares of American arms companies will remain profitable regardless of who wins the US election.
During election campaigns, 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 typically reacts to expectations and forecasts, so it is important to follow candidates' statements and policy platforms to better understand the potential impact on different sectors and companies.
