Tags: 2020 Elections | trump | biden | etf | election | invest

Barron's: Trump or Biden? 10 ETFs That Should Climb Either Way

Barron's: Trump or Biden? 10 ETFs That Should Climb Either Way
(Dollar Photo Club)

By    |   Tuesday, 11 August 2020 08:50 AM

Clean energy, infrastructure, and some healthcare companies are likely to gain no matter who wins in the 2020 election, Barron’s recently predicted.

Climate change and energy policy is one of Democrat Joe Biden’s priority issues. He has announced plans to invest heavily in research and innovation, and aims for a 100% clean energy U.S. economy by 2050, the financial publicatoin explained.

“If the Democrats win the White House and Congress, Wolfe Research strategist Chris Senyek expects aggressive environmental legislation to pass, including strong emissions standards across several industries, new fuel-economy standards, mandated future levels of clean-energy production, and a “cap and trade” program,” Barron’s said.

Another relatively safe bet, regardless of who wins the White House, is infrastructure companies. The Biden campaign has promised to revitalize U.S. infrastructure, spending $1.3 trillion over a 10-year period on highways, bridges, and airports. President Trump is reportedly considering proposing $1 trillion in infrastructure spending.

Additionally, both candidates are pushing to cut prescription-drug prices and promote the development of generic drugs. That would be bad news for Big Pharma and biotech, but could reduce expenses for hospitals and health insurers.

Barron’s 10 Best Election ETF Bets:

Fund (Ticker Symbol)

  1. First Trust Nasdaq Clean Edge Green Energy (QCLN)
  2. Invesco WilderHill Clean Energy /(PBW)
  3. Invesco Solar (TAN)
  4. First Trust Global Wind Energy (FAN)
  5. Global X Lithium & Battery Tech (LIT)
  6. Global X U.S. Infrastructure Development (PAVE)
  7. iShares U.S. Infrastructure (IFRA)
  8. iShares U.S. Healthcare Providers (IHF)
  9. SPDR S&P Health Care Services (XHS)
  10. Invesco S&P SmallCap Industrials (PSCI)

Regardless of who wins, one thing is nearly certain for investors: the contentious election season will ramp up market volatility.

With less than three months until polling day, the commonly-traded options and futures contracts that typically match that timeframe are now firmly in play. But currency and interest-rate bets reflect quite a different view to equities, leaving some wondering which signals to trust, Bloomberg reported.

Positioning in foreign-exchange derivatives suggests that November’s election -- which may be hampered by the ongoing coronavirus pandemic and risks being drawn out -- will be accompanied by a spike in volatility. The U.S. rates market also indicates the possibility of increased turbulence, but equity options paint a more nonchalant picture.

“While media makes a big deal of the election 100 days away, for the markets, three months is the key,” said Marc Chandler, chief strategist at Bannockburn Global. “The election will be messy, and absentee and mail-in votes will take some time to count.”

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Clean energy, infrastructure, and some healthcare companies are likely to gain no matter who wins in the 2020 election, Barron’s recently predicted.
trump, biden, etf, election, invest
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2020-50-11
Tuesday, 11 August 2020 08:50 AM
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