These Sectors Might Skyrocket Under a Biden Administration
Disclaimer: This post does not constitute financial advice. Author has no position in any stocks/sectors mentioned. Do your own due diligence before making an investment.
With a Democratic majority in place in the senate once Biden is inaugurated, a blue wave will surely fly through the economy.
Moderates will keep any extreme bills from passing, but Democratic bills will most likely go through with no issues. Future Supreme Court nominations will succeed, which means any major decisions might start swinging left. Therefore, what should we be looking for in terms of blue trends?
First, the Democrats will lean towards healthcare funding. They want everyone to be vaccinated and to stay healthy. Opportunities are great in masks, personal protection gear, hand sanitizer. As well as Moderna (MRNA) and Pfizer (PFE) (two COVID-19 vaccines).
Since people will want to stay safe shopping, Square (SQ) may improve this year as well. Square is a touchless, wireless, credit and debit machine for small businesses. As businesses adapt to the changing climate of less and less cash, more will be forced into this payment platform. Since COVID-19 won’t be going anywhere for at least a couple of months, businesses will use Square in order to stay safe.
Democrats will lean towards green energy production. Lose your investments in non-renewable energy and invest in green energy. For example, Enviva Partners, LP (EVA) produces biomass pellets and uses them to create green energy. This replaces the need for coal and fossil fuels.
Green tax rebates will most likely be prevalent. Some states, like California, are considering cutting gas-powered cars from the streets eventually. If you’re in it for the long game, check out electric car companies, such as Tesla (TSLA).
Democrats will likely pass stimulus bills that will be used towards homes. Anything that has to do with a mortgage or home ownership, such as residential REITs, might go back up. The left doesn’t want people losing their homes and moving to the suburbs because of COVID-19. They support stimulus packages and keep people in their city homes. This is one of the greatest changes that might take place with a Biden administration, as it was a great point of contention in the election. Republicans weren’t big fans stimulus while Democrats pushed for it. Therefore, you can probably expect that aid will be given to renters and landlords.
If marijuana is decriminalized at the federal level, investing in the marijuana market might be a good call. The best chance we’ve had so far in getting marijuana business booming is with this Democratic government and blue wave. If these companies had access to loans, rental units, and other aspects of a legitimate business, their production and sales would increase. Despite Kamala Harris arresting many marijuana users (1,500 were put in jail, yikes) before she became Vice-President Harris, she has since stated she would decriminalize it.
The Biden administration will bring forth a tentative blue wave. With an equal number of Republicans and Democrats in the Senate, Kamala Harris will be able to pass the tie-breaking vote. Prepare accordingly! The United States will trend blue for the foreseeable future, so ride that big, blue wave like you’re in Hawaii.
