With Election Results Coming In, these are the stocks to watch for
Unlike traders, investors have to think defensively. Election results may not affect traders as much since making and losing money is quite unpredictable. Still, for investors, the election results can change the profitability of a long-term investment. This article will discuss which stocks will be the safest bet depending on the election results.
Profitable stocks regardless of the election outcome
Individual stocks will continue to be profitable, no matter the election results. You can look at the Industrial Select Sector SPDR ETF (XLI), which is estimated to do well for a safe bet. Rockwell Automation (ROK) is a great option if you look for an individual stock within the industrial sector. The 117-year-old company is a very safe bet if we look at its consistent performance over the last six elections. If you want to invest in the energy sector, Cabot Oil and Gas (COG) is an excellent option to look at. The company’s performance has been fair throughout the pandemic, with a 20% increase at the end of October. To be on the safer side, you should buy an equal amount of Tesla (TSLA) stocks along with Cabot.
Profitable stocks if Trump wins
Based on the campaigns, it is reasonable to infer that the defense sector will boost if Trump wins the elections. Lockheed Martin (LMT) and Raytheon (RTX) are good bets to invest in, with a high-profit probability. Smith and Wesson (SWBI) and Ruger Firearms (RGR) are also predicted to do well in the coming months. Apart from Cabot, United States Brent Oil (BNO) looks like a safe option in the energy sector, at least for the short term. The Financial Select Sector SPDR Fund (XLF) is currently showing an upward trend in the financial sector.
Profitable stocks if Biden wins
Both the presidential candidates are far apart in their views on business and economic policies. If Biden wins, Tesla (TSLA) will be the most profitable bet of the year. Another profitable bet in the renewable energy sector will be iShares Global Clean Energy ETF (ICLN), which has already shown a record-breaking upward trend last month. Another possible bet could be SPDR Kensho Clean Power ETF (CNRG), which can arise if Biden wins. The health care system may rise as a profitable sector of investment as well. Microsoft (MSFT) is another profitable stock, especially if Congress approves additional monitoring and testing.
Profitable investments depending on the pandemic policy
The above predictions can change due to the still-present Covid-19 pandemic situation. The winning candidate’s response towards this problem can cause multiple companies, especially in the biotech sector, to fail or succeed. Investing in this sector is difficult, although rewarding scheme. While AstraZeneca (AZN), Pfizer (PFE), and Moderna (MRNA) are in the downtrend for the covid-19 vaccine race, the latter is expected to show an upward rise in the coming months.
In short, the winner of the elections holds the future of the biotech companies in their hands. Therefore, it is advisable to refrain from making considerable investments in this sector until the election results are out while engaging in small investments in the sector.