As Kamala Harris and Donald Trump debate for the first time in their race for the White House on November 5, investors will be keenly analyzing their policy proposals for potential impacts on their portfolios.
According to deVere Group, a leading global financial advisory and asset management firm, this debate is a crucial opportunity for US and international investors to strategically position themselves to capitalize on opportunities and manage risks.
deVere CEO Nigel Green highlights the significance of the upcoming election for various sectors:
“The outcome of the US election will have substantial effects on industries such as renewable energy, electric vehicles (EVs), defense, and traditional energy,” Green states. “Investors should be ready for a Harris presidency, which could spotlight clean energy, housing support, and cannabis stocks, or a Trump administration, which might benefit oil, defense, and cryptocurrency sectors.”
Harris has been a strong advocate for green energy, which would likely boost renewable energy companies and the electric vehicle sector through supportive regulations and tax incentives. Her approach to US-China trade relations is also a key consideration.
“With the US-China trade relationship being strained in recent years, a Harris administration might adopt a more balanced stance compared to Trump’s often confrontational approach,” Green notes. “This could positively impact companies with significant Chinese exposure, such as Tesla and Apple, as well as semiconductor firms like Nvidia and Qualcomm.”
Harris’ housing policies, which include down-payment assistance for first-time buyers and incentives for affordable housing projects, could stimulate growth in the housing sector.
Conversely, if Trump wins the election, investors should anticipate a focus shift back to traditional energy sectors.
“Trump’s pledge to ease regulations on oil production could benefit major oil companies like Exxon and Chevron,” Green explains. “However, clean energy and EV firms might face challenges if Trump repeals existing tax credits for EV purchases.”
Defense contractors are also expected to gain from a Trump victory, given the historical trend of increased defense spending under Republican administrations. Additionally, Trump’s evolving stance on cryptocurrency, now favoring digital assets, could further drive the growth of cryptocurrencies like Bitcoin.
In light of potential market fluctuations, investors should consider the following strategies:
“There will be clear winners and losers based on the debate’s outcome,” Green advises. “Diversifying portfolios across various sectors can help manage risk and capture potential gains regardless of who wins. Investors may also want to allocate some assets to safe havens like gold or Treasury bonds to hedge against short-term volatility.”
With election uncertainties and market volatility, the debate represents a critical moment for investors to reassess their strategies and prepare to adjust their portfolios accordingly.
“Whether you’re looking to benefit from clean energy’s growth under Harris or betting on traditional energy and defense under Trump, it’s crucial to stay vigilant and be ready to rebalance your portfolio as needed,” Green concludes.
