Look at some Biden stocks that might do well during his presidency. Let’s focus on the American economy and the global financial markets to see the market reaction below.
The idea that stock markets perform better under certain Presidents or parties is a complete fallacy. And, frankly, it gives sitting Presidents a little too much credit for their impact on the markets. Not that they are not influential, but the President himself is not behind the ebbs and flows of the global financial markets.
The stock market surged and plummeted under President Trump, and the bull market we experienced was inherited from the previous Obama regime. The dot-com crash in 2000 was under President Clinton and the Democrats, while the 2008 mortgage crisis was under President Bush and the Republicans.
Chart by TradingView
So, what does a Biden presidency mean for the short-term markets? There were many promises of free money. The Democrats proposed a stimulus for $2.2 billion in October but never made it past the Senate.
President Trump delayed negotiations over the stimulus package until after the election. It should be one of his first moves now that Biden was elected.
Biden should introduce financial policies that assist the rest of society, which includes raising the Federal minimum wage levels and supporting visible minorities and their communities.
One of the biggest issues that Biden ran his platform on was the shift in focus from fossil fuels to clean energy. This green wave revolves around a $2 trillion investment into clean energy and renewable resources.
President Trump, on the other hand, supported the coal industry and oil companies. At times, it seemed this election was personal between the two men. And in reality, we may never have seen two more contrasting Presidents. Look at a few Biden stocks that should thrive.
Biden Stocks to Watch
1. Tesla (NASDAQ: TSLA)
The no-brainer for Biden stocks. Tesla has been one of the hottest stocks all year, up nearly 360% year to date. The reach and success of Tesla would most likely happen under any President. However, given Biden’s green lean and commitment to shifting to clean energy, Tesla has a much more direct path to success. Several states have already committed to the electric vehicle craze. California and New York have invested in installing charging stations en masse. New York also plans to have a carbon-free public transportation system by 2040. And California will ban the sale of gasoline-powered vehicles by 2035.
Tesla Analysis
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While most of us think of cars when we think of Tesla, it is just as much an energy company as a car company. Biden has doubled down on renewable resources. As a result, this bodes well for Tesla’s solar power branch, which could expand to homes nationwide shortly.
Tesla also stands to gain when it launches its Tesla Semi, which should be the industry leader in the zero-emission long-haul trucking sector. Blue or red, the future for Tesla and its investors has always been bright, but Tesla now has two trillion reasons to continue its dominance in the clean energy industry.
Switchback Energy (NYSE: SBE): If you haven’t heard of this stock, it is nothing to be ashamed of. Switchback Energy is the SPAC IPO name for the reverse merger with ChargePoint, a California-based company that builds charging stations.
The company anticipates over 165,000 electric vehicle charging stations worldwide, including in the United States, Canada, Mexico, and Australia. The total addressable market for ChargePoint is quite literally the world, but expect huge leaps in the United States under the Biden administration. Watch for a golden cross on the stock to go long. Let’s check our more Biden stocks.
$SBE daily stock chart using two of our favorite indicators: ichimoku cloud and heiken ashi candles.
Biden has already said the first thing on his to-do list as President is to get the COVID-19 pandemic under control in the United States. Recently, America hit all-time highs with over 100,000 new cases daily over the past week.
While issuing a lockdown has been difficult in America, Biden has emphasized that he will focus on science in defeating the coronavirus. The science probably leans more toward producing vaccine candidates rather than shutting down the American economy again.
Companies like Moderna (NASDAQ: MRNA), Gilead Sciences (NASDAQ: GILD), Johnson & Johnson (NYSE: JNJ), Novavax (NASDAQ: NVAX), and Pfizer (NYSE: PFE) could all see a boost here as the urgency of Operation Warp Speed goes into hyperspace.
These companies are in the final stage of clinical trials or have already had a vaccine candidate approved by the FDA. That said, look for the American Government to invest heavily in some or all of these firms. I’d also look hard at these facemask stocks. Facemask stocks could be popular Biden stocks.
3. Health Care Biden Stocks
United Health (NYSE: UNH): With the Democrats back in power, the health industry will be near the top of the agenda for President Biden and Vice President Kamala Harris. Biden was a huge proponent of ACA, or the Affordable Care Act, under President Obama.
He will likely build upon that to bring healthcare to the people through public medical plans. Any guess on who would benefit from this? United Health Care is the largest healthcare company by revenue in the world, and it saw a nearly 30% spike after President Obama originally introduced ACA.
Other points like lowering pharmaceutical prescription prices should immediately impact United Health costs and factor into the medical industry’s bottom line. Biden stocks are so-so in the healthcare department.
$PFE recently announced it had a 90% effective rate and the stock went wild breaking daily resistance! Vortex indicator show on the lower portion of the screen!
4. The Tele-Med Industry
Hello? Telehealth stocks? If more American citizens are accessing affordable healthcare, look for more doctors and hospitals to provide consultations and visits via everyone’s new favorite mode of communication: Video calls.
Industry leader Teladoc (NYSE: TDOC) has been one of the winners of the coronavirus pandemic. The company’s usage should boom as the world continues toward fewer in-person visits. Teladoc is also joining forces with Livongo in a partnership that should lockdown the virtual medical care industry.
A renewed focus of Biden stocks on affordable healthcare means more usage for people in lower-income communities and rural towns. Companies like Teladoc and Google-backed Amwell (NYSE: AMWL) should thrive in our new normal of a virtual doctor’s office.
Biden Affect on China Companies
Let’s talk about the elephant in the room in American politics. China. These Biden stocks stand to gain immensely under the new regime rather than a second term from President Trump. The much-publicized battle between President Trump and TikTok was long and dragged out, and you can bet the Chinese government will remember that.
Not that Biden is pro-China, but it is doubtful that he will go out of his way to attack China as President Trump was known to do. The “China Flu” terminology that President Trump publicly used probably did not make him any friends in the Asian country.
So, Biden would be smart enough to distance himself from any controversial things President Trump has said. Hindsight is 20/20. Biden has legally signed the ban on TikTok unless the owner sells it.
In any event, there should be a period of de-Trumping regarding foreign affairs, and countries like China should welcome a change to the leader of the free world.
Companies like Tencent (TCEHY), Nio (NYSE: NIO), and AliBaba (NYSE: BABA) should remain on investor’s radars, and American investors can rest reassured that there is a likely chance that these companies will not de-list from the NYSE.
Final Thoughts: Biden Stocks
Axon Enterprise (NASDAQ: AAXN): You may learn more about this company by looking at its previous name, Taser.
Both President Biden and Vice President Harris are staunchly in favor of federal gun control and eliminating mass shootings caused by unnecessarily owned civilian assault rifles.
They should, in theory, make stricter regulations in obtaining guns and ammunition. Vice President Harris strongly advocates for visible minorities, especially African Americans.
What has been at the forefront of social injustices this year? Police brutality. Axon is a company that builds and creates police weaponry, protection, and devices.
With a national eye on police brutality and gun control, why would there not be a shift in focus to non-lethal methods of detaining individuals rather than shooting to kill?
The Axon CEO envisions an America with policing without killing by 2030 and is creating the technology to make this happen. Can we envision a more peaceful America over the next four years? Hopefully, Axon can help reduce unnecessary civilian deaths, and investors in the Arizona-based company should thrive.
Thanks for reading our Biden stocks post. As a reminder, take our free stock training courses so you always use the technicals and not emotions to dictate your trading! Check out Cobra Trading if you’re looking for a broker to trade all the above stocks!
Frequently Asked Questions
President Calvin Coolidge has had the highest stock market to date. He was president in the 1920s.
Joe Biden's stock market has been highly volatile. It's gained around 28% and lost around 25% so far.
Presidents get blamed and take credit for the success or lack thereof of the stock market. However, their influence is small. Congress passes laws that affect it more.
The stock market has gone up 34% since Biden's inauguration. However, it has been highly volatile during his presidency so far.
