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Election years tend to have significant volatility in the stock market. Many investors are trying to understand how each candidate’s policies will impact areas of the economy.
No matter who should win the presidential election in November, it’s almost guaranteed to impact the stock market. Should Donald Trump lose to the Democratic nominee, here are a few money moves you should make.
Invest in Renewable Energy
One of Trump’s campaign promises has been to expand domestic oil production. He’s also said he plans to roll back Biden’s Inflation Reduction Act, which provided $20 billion to boost renewable energy projects. If Trump loses in November, investors can expect that Biden’s initiative to cut our nation’s dependence on fossil fuels will continue to move forward.
This means investing in renewable energy companies would be a favorable option. Companies like First Solar and Tesla could have significant upside with a Democratic White House.
Even though First Solar has been dealing with headwinds due to lower demand from higher interest rates, this has created a great buying opportunity. According to stock portfolio tracker Ziggma.com, First Solar has a lot of upside potential. Not only does it have a price-to-earnings growth value below one — which means the stock price is cheap when adjusted for earnings growth — but it’s also expecting revenue growth of 36% next year.
“If Trump loses, it’s likely that a democratic administration would prioritize green energy initiatives, providing substantial federal support and incentives for the renewable energy sector,” said Dennis Shirshikov, finance and economics adjunct professor at The City University of New York and head of growth at GoSummer.com. “Investing in companies specializing in solar, wind, and other sustainable energy sources could yield considerable returns.”
Infrastructure
One of President Biden’s big initiatives has been passing the Infrastructure Investment and Jobs Act, which provides $1.2 trillion for infrastructure projects. If Trump loses the November election, rebuilding our nation’s infrastructure will likely continue to be a priority for any Democratic president.
“If Trump loses, we could see an increase in federal spending on infrastructure as part of economic stimulus efforts,” said Shirshikov. “Infrastructure investments typically include upgrades to roads, bridges, public transit, and renewable energy infrastructure. Companies involved in construction, engineering, and materials could see a surge in demand.”
Hold Federal Student Loan Debt
While most people want to eliminate debt as quickly as possible, a November win by the Democrats could mean the best move would be to continue holding onto federal student loan debt.
“If Trump loses the election, I’m holding off on refinancing my student loans,” said Brian Kuderna, founder of Kuderna Financial Group and author of “What Should I Do with My Money?“
“The Biden-Harris administration has been promising student loan relief and forgiveness from day one, so if Harris is elected, she’d likely push through some reform — but this would only affect federal student loans, not private ones,” he said.
Real Estate
With a Democratic win in November, there will likely be some discussion about the direction of inflation. While progress has been made, additional government spending will likely keep prices elevated on many consumer items.
Historically, real estate has always been a good hedge against inflation and volatility during election years.
“If Trump loses, we might see shifts in tax policies, regulatory frameworks, and interest rates,” said Venkata Jagadish, real estate investor and founder of Jay Buys Houses Group. “These changes could create new opportunities in the real estate market. Specifically, I aim to expand my rental property portfolio and invest in commercial real estate sectors like healthcare and logistics, which have shown resilience and growth potential.”
The Bottom Line
No matter what happens in this November’s presidential election, the stock market is likely to be affected. To what extent will depend on the policies that are enacted. If the Democratic nominee wins, the above moves would help protect your money.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out I’m an Investor: I’m Making These Money Moves Immediately If Trump Wins.
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Source: I’m an Investor: I’m Making These 4 Money Moves if Trump Loses
