The tech-heavy NASDAQ index fell from 11,900 points to below the 11,000 mark in the past three weeks after polls strongly favored Biden. A group of stocks that are likely to benefit from Joe Biden’s policies has beaten the stocks that could benefit from Donald Trump’s win, according to Morgan Stanley. The US bank has created two stock baskets to gauge the impact of elections on stock performance. A “Biden basket” of stocks soared almost 4.5% in the last two months while the “Trump basket’ of stocks fell 16%.
The potential winners from Joe Biden win
The political strategist and venture capitalist Bradley Tusk stated that Joe Biden win will be appreciated by the Silicon Valley as the Donald Trump administration has created a lot of uncertainty due to trade war with China and European countries. Green energy stocks are likely to perform well if Biden wins as he is planning to push the country towards green energy. Alternative energy stocks soared sharply in the past few weeks amid anticipation for Biden win. For instance, Brookfield Renewable Partners (NYSE: BEP) stock jumped close to 5.1% on Monday while Enphase Energy (NASDAQ: ENPH) stock grew 8.1% increase. Infrastructure stocks and diversified industrial companies are likely to benefit from Joe Biden’s policies as Trump’s trade restrictions have created a lot of uncertainty for these companies in the past four years. The small caps could also race higher in case of democrats win amid Biden’s plan of offering big stimulus packages to companies that are struggling due to the virus spread.
The potential losers if Trump loses elections
Pharma and biotech stocks are likely to feel the pressure in case of Joe Biden win. The democrats are against high prescription drug prices. Banks could also face pressure amid concerns over more regulations. Fossil fuel stocks could also fall as the democrats are pushing towards green energy.
