Category: Politics

 

ETFs Allow Investors to Play the Market Depending on Which Candidate Wins

 

Think you know who is going to win the presidential election this fall? Well, you don’t have to just sit there posting your predictions on social media; you can put your money where your mouth is and invest in stocks and funds that will benefit if your prediction is correct.  The following is a projection of the industries most likely to win or lose under either outcome scenario.  Included is a list of Exchange Traded Funds (ETFs) poised to benefit depending on the outcome.

 

Biden Win:

The Biden platform includes a push to improve the
nation’s infrastructure. The democratic presidential candidate has been very vocal about his intent to boost government spending on the nation’s infrastructure.  This includes buildings, housing, roads, bridges, green spaces, water systems, electric grids, railroads, mass transit, and universal broadband. The Biden plan aims to upgrade 4 million government buildings and weatherize 2 million homes through cash rebates and low-cost financing.  It would build 1.5 million homes and public housing units to address the affordable housing crisis. There are many ETFs that invest in construction companies that would benefit from increased spending.  Examples include Global X US Infrastructure Development (PAVE), iShares U.S. Infrastructure ETF (IFRA), and Invesco Dynamic Building & Construction (PKB).  Since President Trump also favors increased investment, and infrastructure ETF may be a solid investment regardless of who wins the election.

A vote for Biden is a vote for renewable energy.  Joe Biden has proposed a climate plan that would invest $2 trillion to boost clean energy and rebuild the nation’s infrastructure. The plan calls for the United States to be on a path to reach net-zero carbon emissions by 2050.  The plan would have positive implications for many industries, chief among them the solar industry.  ETFs such as Invesco Solar (TAN), IShares Global Clean Energy (ICLN), ALPS Clean Energy (ACES), Van Eck Vectors Low Carbon Energy (SMOG) all seek to invest in stocks that benefit from increased attention to the environment.

 

 

Biden wants to bring the U.S. auto industry back. Biden’s plan includes increasing federal procurement by $400 billion to purchase clean vehicles from domestic auto companies for all government fleets. It also includes government spending to support the automobile infrastructure including adding 500,000 electric vehicle charging stations and devoting government spending on research to improve electric vehicle batteries.  Global X Autonomous & Electric Vehicles (DRIV), SPDR S&P Kensho Smart Mobility (HAIL) and iShares Self-Driving and Tech (IDRV) would all benefit from increased investments in electric vehicles.

 

Trump Win:

Trump wants to make the U.S. energy dominant.  President Trump has not formally declared a platform regarding his plans for the energy industry, but indications are that he would continue a path taken during his first term. Energy Secretary Dan Brouillette said that President Trump would seek to “maintain our posture as the No. 1 producers of oil and gas.” Already, the president has relaxed drilling restrictions on U.S. forest land and Alaska and has hinted at opening the Florida and California coasts to drilling. He has rolled back Obama-era fuel economy standards for the automotive industry. The Trump administration stresses protecting traditional energy jobs.  President Trump’s actions are in clear contrast with the Biden Plan and would favor the oil, gas, and coal industries.  ETFs such as the VanEck Coal (KOL) and the Energy Select Sector SPDR (XLE) would benefit under a Trump reelection.

President Trump is committed to rebuilding the country’s national security and defense. The White House believes deterrence is the best way to preserve peace. The current administration has increased active Army troops, Marine battalions, Navy ships, and Air Force fighters.  He has created the sixth branch, Space Force. The $738 billion defense bill signed in December 2019 included a pay increase for troops and additional spending on fighter jets.  There are many aerospace and defense companies that would benefit from increased spending.  PowerShares Aerospace & Defense Portfolio (PPA), SPDR S&P Aerospace & Defense (XAR),  iShares U.S. Aerospace & Defense (ITA), and Procure Space (UFO) are just a few examples.

 

 

How about investing in companies that contribute to the Trump campaign?  Instead of investing in companies that benefit from the policies of President Trump, how about investing in companies that invest directly in the Trump campaign? The Point Bridge GOP Stock Tracker Index (MAGA) seeks to track the performance of companies whose employees and political action committees are highly supportive of Republican candidates.

 

Summary

The purpose of this article is not to debate the merits of either candidate nor is it to make a prediction as to which candidate will win in November.  Instead, this information attempts to summarize the stance of each politician’s platform and identify industries and ETFs that would benefit if that politician were elected to office. 

 

Suggested Reading:

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More Accurate than polls to Predict Election Outcomes

Fear of Missing Out on Owning the Next Apple

 

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Sources:

https://stocknews.com/news/pave-tan-icln-3-etfs-to-buy-for-a-biden-presidency/, Aditi Ganguly, Stocknews, August 12, 2020

https://www.cnbc.com/2018/01/08/make-america-great-again-etf-outperforms-the-stock-market.html, Berkeley Lovelace Jr. & Matthew J. Belvedere, CNBC, January 8, 2018

https://www.yahoo.com/news/trump-biden-infrastructure-etfs-soar-183006534.html, Sanghamitra Saha, Zacks, July 10, 2020

https://joebiden.com/clean-energy/,

https://www.npr.org/2020/07/14/890814007/biden-outlines-2-trillion-climate-plan, Alana Wise, NPR, July 14, 2020

https://www.marketwatch.com/story/3-electric-vehicle-etfs-to-floor-it-with-2020-08-11?mod=exchange-traded-funds, ETF Professor, MarketWatch, August 11, 2020

https://www.eenews.net/stories/1063712711, Lelsley Clark and Heather Richards, E&E News, August 28, 2020

https://www.whitehouse.gov/issues/national-security-defense/

https://www.cnbc.com/2019/12/21/trump-signs-738-billion-defense-bill.html, Amanda Macias, CNBC, December 20, 2019

 

Jeb Bush to Present at NobleCon16 Investor Conference

(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)

Presidents Day 2020, Jeb Bush, Governor of Florida (1999-2007) will provide the opening address at Noble Capital Markets annual investor conference, NobleCon16. Bush’s keynote address on Monday, February 17, should offer a unique perspective on the upcoming election, along with current business and economic topics.

During his eight years as Governor, Bush became known for his pro-business, low-tax position. He reduced taxes by $19 million, cut the size of Florida’s state government by 6.6% and vetoed $2 billion in new spending. During that time the state’s reserves grew from $1 billion to $10 billion, resulting in Florida being the only state from 1999-2007 to be upgraded to AAA by analysts at S&P. “NobleCon offers family offices, self-directed investors, investment advisors and institutional investors direct access to America’s most important asset: emerging growth companies,” said Bush. “These are the companies that represent breakthroughs in technology, science and medicine. I’m looking forward to being a small part of this important conference.”

The conference is open to investors, including, institutions family offices, investment advisors, hedge funds, equity analysts, private equity & venture capital firms, independent brokers, wealth managers, and self-directed investors. Information for those wishing to attend can be found on the NobleCon conference
website.

His keynote address is one of many important announcements Noble has been making concerning NobleCon16. Additional “in-the-know” presenters and the details of six different panel presentations with topics such as; Oncology, Inflammasomes Immunotherapy Agents, Type 1 Diabetes, Precious Metals Exploration, International Transportation & Logistics, and others.

Should you attend NobleCon16?

If you’re a Channelchek user, you already have an interest in discovering more about the types of companies that will be represented at NobleCon16.  NobleCon conferences experience 70% repeat attendance by investors who want to build on their understanding of opportunities and perhaps meet privately with company management to best understand potential.  If you’re a money manager, family office, financial services provider, self-directed investor, or equity analyst, you are likely to learn of companies, products, and breakthroughs you could easily miss in a world where larger household name companies get the majority of the spotlight. Some of tomorrow’s household names are companies that benefit from more light being shed on them today. That’s what NobleCon and ChannelChek are about, shedding more light on small and microcap opportunities — unearthing actionable ideas.

More Information:

www.NobleConference.com

https://noblecapitalmarkets.com/news/jeb-bush-noblecon

Photo Courtesy of: Gage Skidmore

OnDeck Survey: Economy is Top Concern for Small Businesses Ahead of 2020 Election

NEW YORK, Sept. 13, 2019 /PRNewswire/ — OnDeck® (NYSE: ONDK), the leader in online lending to small business, today announced the results of a national survey of U.S. small business owners that finds economic issues are the most important factors in determining their choice for president in 2020.  The survey is the first in a series that OnDeck plans in order to gauge small business sentiment during the 2020 election season.

Among the economic issues driving presidential election decision making for many small business owners were the health of the U.S. economy, the climate for small business growth and tax policy. The OnDeck survey included small business owners from all 50 states and a diverse set of industries. Respondents were roughly split evenly between male and female business owners.

Key Findings from the
OnDeck Small Business Survey:

• Economic concerns arise in several dimensions, including tax policy, job growth, support for small businesses, government spending and the overall economic climate. These issues were cited as the top concerns of more than 33% of those surveyed;
• Immigration was an issue of interest for 11.3% of small business owners surveyed, ranking second behind the economy as a concern.
• 57% of small businesses surveyed said they were either “Very Optimistic” or “Somewhat Optimistic” about the economic outlook for their businesses;
• 93% of those surveyed said they plan to vote in the 2020 election.
• 60% of small business owners surveyed said they already know who they plan to vote for in the 2020 presidential election.

Presidential Candidate
Preference of U.S. Small Business Owners:

President Donald Trump was the choice of 37% of small businesses surveyed, followed by Joe Biden at 18%.  When combined, the top five Democratic candidates were the preference of 44% of respondents.   

Republican Candidates

• President Donald Trump – 37%

Democratic Candidates –
Top 5

• Joe Biden – 18%
• Bernie Sanders – 8%
• Elizabeth Warren – 8%
• Kamala Harris – 6%
• Pete Buttigieg – 4%

“The survey results make it clear that U.S. small business owners will have a significant voice in determining the outcome of the 2020 presidential election,” said Andrea Gellert, Chief Revenue Officer, OnDeck. “Most notably, their focus on ‘Main Street’ issues like taxes and business growth reminds all candidates that they should address the concerns of the men and women who make our economy run.”

Survey Methodology
The OnDeck survey of 700 small business owners was conducted from August 5 to August 9, 2019 and included small businesses in all 50 states and from a diverse set of industries. The margin of error was 3.1 percent.

About OnDeck
OnDeck (NYSE: ONDK) is the proven leader in transparent and responsible online lending to small business. Founded in 2006, the company pioneered the use of data analytics and digital technology to make real-time lending decisions and deliver capital rapidly to small businesses online.  Today, OnDeck offers a wide range of term loans and lines of credit customized for the needs of small business owners.  The company also offers bank clients a comprehensive technology and services platform that facilitates online lending to small business customers through ODX, a wholly-owned subsidiary. OnDeck has provided over $12 billion in loans to customers in 700 different industries across the United States, Canada and Australia. The company has an A+ rating with the Better Business Bureau and is rated 5 stars by Trustpilot. For more information, visit www.ondeck.com.

Media Contact:
Jim Larkin
OnDeck

jlarkin@ondeck.com
P: 203-526-7457

Investor Contact:
Stephen Klimas
OnDeck

sklimas@ondeck.com
P: (646) 668-3582

OnDeck, the OnDeck logo, OnDeck Score and OnDeck Marketplace are trademarks of On Deck Capital, Inc.

Will Iran Continue to Grow Their Nuclear Program?

(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)

In 2015, Iran agreed to a long-term nuclear accord with six other world powers, called the Joint Comprehensive Plan of Action. It came after years of tension over Iran’s efforts to develop nuclear weapons, even though they insisted the program was entirely peaceful, the international community was not convinced. The other side of the deal consisted of lifting sanctions that were crippling Iran’s economy. It was set to last 15 years after the “implementation day” which took place January of 2016. In May 2018, President Donald Trump withdrew the United States from the agreement, stating it failed to address Iran’s ballistic missile program. He reimpose sanctions and is now moving to diminish Iran’s oil exports. Resulting from this, Iranian President Hassan Rouhani announced they will no longer adhere to certain limits as they have not seen the deal’s envisioned economic benefits.

Can Hong Kong Retain Its Autonomy?

(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section) 

Hong Kong protests started when opposition arose against the now-suspended bill which would have granted Beijing the ability to extradite suspects to mainland China. Activists are fighting against the erosion of constitutional freedoms and democratic processes which have been instated in Hong Kong’s Basic Law. Article 45 of the Basic Law, instated in 1990, states that the chief executive, Hong Kong’s highest-ranking political member, is selected through “universal suffrage upon nomination by a broadly representative nominating committee in accordance with democratic procedures.” In the Basic Law, Beijing will need to approve all voter decisions made by the people in Hong Kong. The National People’s Congress Standing Committee ruled that in order for a candidate to appear on the Hong Kong voting ballot, they would have to receive more than half of the votes from the nominating committee. This would make it, so that the ballot is identical to the picked chief executives of the election committee and guarantees the candidates would be selected by Beijing. The new amendments to Basic Law legislation have led to increasingly violent street protests by activists who are understandably concerned about retaining their rights.