Upcoming Presidential TV Debate Draws Attention to Market and Theme Stocks
Biden's Presidential Run Sparked Trump Theme Stock Rally
Marijuana Expected to Enjoy Presidential Premium as Well
Bloomberg reported on the 9th (local time) that ahead of the US presidential candidates' TV debate, the market is busy looking for beneficiaries of Harris and Trump. In the previous presidential candidate TV debate, Republican presidential candidate former President Donald Trump achieved a complete victory over then Democratic presidential candidate President Joe Biden, leading to a surge in 'Trump-themed stocks.'
Depending on the outcome of this TV debate, related stocks such as renewable energy and electric vehicles are expected to show high volatility. Democratic candidate Vice President Kamala Harris is expected to continue Biden's pro-environment policies if in power, whereas former President Trump is expected to abolish them. Bloomberg identified electric vehicle companies Tesla, Rivian, Lucid Group, charging infrastructure and battery manufacturers ChargePoint Holdings, Beam Global Blink Charging, solar companies First Solar, Sunrun, among others, as Harris-themed stocks.
However, in the case of Tesla, since CEO Elon Musk is expected to serve as chairman of the Government Efficiency Committee if former President Trump is elected, there is considerable analysis that Tesla could also be seen as a Trump beneficiary stock.
Stocks related to homebuilders are expected to benefit under the Harris administration. Vice President Harris has pledged in her campaign to provide up to $25,000 (about 34 million KRW) in support to new homebuyers and is also considering establishing a $40 billion fund to address the housing supply shortage. Homebuilders DR Horton, Lennar, and KB Home were analyzed as Harris beneficiaries.
Harris underdog stocks are also mentioned. Banks are a representative example. The Biden administration has strengthened capital requirements for large banks and announced revised Consumer Financial Protection Bureau regulations in March that cap credit card late fees at $8, so related regulatory policies are expected to continue. The pharmaceutical and biotech sectors are similar, with Vice President Harris pledging an annual out-of-pocket cap of $2,000 on prescription drugs.
If former President Trump emerges as the next president, buying interest may pour into fossil fuels such as oil and natural gas, and defense-related stocks. Private prison companies and firearms manufacturers are also grouped as Trump beneficiaries.
Former President Trump has promised to foster cryptocurrencies and abolish related regulations, so cryptocurrency exchange Coinbase and mining company Marathon may see gains, Bloomberg forecasted. On the 29th of last month, former President Trump announced via social media platform X (formerly Twitter) that he would make the US the cryptocurrency capital of the world.
Marijuana-related stocks are expected to enjoy a presidential election premium. The Democratic Party is working on reclassifying marijuana, currently illegal, at the federal level to win young voters. Former President Trump also wrote on Truth Social on the 8th that he intends to legalize recreational marijuana use for adults over 21, so regardless of which administration takes office next, marijuana-related businesses could be activated.
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