Find the Beneficiary Stocks of the US Presidential Election... Bloomberg's Pick Is 'This'

Biden Beneficiaries: Electric Vehicles & Cannabis
Trump Beneficiaries: Traditional Energy, Defense, & Cryptocurrency

After the U.S. presidential election this November, stock prices are expected to fluctuate significantly across different industrial sectors. This is because the industrial and economic policy plans of the Democratic candidate, President Joe Biden, and the Republican candidate, former President Donald Trump, differ greatly. On the 25th (local time), Bloomberg News analyzed and reported on the beneficiary stocks based on various election outcome scenarios.

If President Biden is re-elected, clean energy will be emphasized, and the rally is expected to spread not only to electric vehicles (EVs) but also to charging infrastructure and battery companies. Bloomberg cited ChargePoint Holdings, Beam Global, and Blink Charging as representative examples. Solar companies, which have struggled due to dumping exports from China, may also see a rise in stock prices. The news agency stated, "First Solar, Sunrun, and Enphase Energy are expected to perform better under the Biden administration."

Cannabis-related stocks are considered ‘Biden beneficiary stocks.’ The Biden administration is currently reviewing plans to reclassify cannabis, which is federally illegal, as a low-risk drug. Depending on the election outcome, Tilray and Canopy Growth are expected to experience increased stock price volatility.

However, the news agency analyzed that a Biden victory scenario could be negative for bank stocks. The Biden administration has strengthened capital requirements for banks with assets over $100 billion following the Silicon Valley Bank collapse early last year. In March, it also announced revised Consumer Financial Protection Bureau regulations capping credit card late fees at $8, down from the previous average of $32. Additionally, the Inflation Reduction Act (IRA) implementation, which leads to drug price reductions, could negatively impact pharmaceutical and biotech sector stock prices.

On the other hand, if former President Trump is elected, stock prices of traditional energy companies such as oil and natural gas could rise. Bloomberg mentioned Baker Hughes, ExxonMobil, ConocoPhillips, Occidental Petroleum, Williams, Devon Energy, and Chevron as noteworthy companies.

Cryptocurrency-related stocks are similar. Former President Trump has emphasized improving the regulatory environment for cryptocurrencies during his campaigns. Related stocks include Coinbase (exchange), Marathon Digital Holdings, Riot Platforms, CleanSpark, Cipher Mining (mining), and MicroStrategy (software). Defense stocks such as Lockheed Martin, Northrop Grumman, and RTX were also classified as ‘Trump beneficiary stocks.’

However, if former President Trump is elected, trade tensions are expected to escalate, putting pressure on companies with high sales exposure to China. The news agency noted that semiconductor manufacturers such as Nvidia, Broadcom, and Qualcomm, chemical companies like Air Products and Chemicals and Celanese, as well as Tesla (automobile manufacturing), BorgWarner (auto parts), and Otis (elevator manufacturing) could face increased downward pressure on their stock prices.

This content was produced with the assistance of AI translation services.