Key industries that might be affected by upcoming US elections

Energy

A Harris administration would greatly benefit the clean energy sector, which could make investments in renewable energy companies more desirable.

Democrats generally highlight green energy projects; hence, companies concentrating on solar, wind, and other sustainable energy sources are likely to see a notable expansion as Harris implements policies supporting the development of green energy.

Her administration is expected to advocate a strong change to renewable energy, implementing laws enhancing solar, wind, and electric car infrastructure. These initiatives might provide renewable energy companies with strong incentives.

On the other hand, stricter regulations and reduced investment opportunities in the fossil fuel industry may compel businesses to prioritise the shift to cleaner technologies.

International trade

A Harris administration could have a more flexible approach to foreign trade, therefore influencing monetary policies that might result in a slower devaluation of the US dollar. In turn, bond yields might drop due to a weaker currency, which would make it more appealing to investors.

Furthermore, domestic producers and exporters might benefit since American goods would become more competitive and reasonably priced on the global market. This shift can create more opportunities for American companies, allowing them to increase sales abroad and extend their reach.

Healthcare

Under a Harris presidency, the healthcare industry is projected to expand since Democrats often concentrate on healthcare changes that provide more business opportunities in this area.

Under a Harris presidency, the healthcare industry is projected to expand since Democrats often concentrate on healthcare changes that provide commercial prospects in this field.

Harris could advocate for programs, including prescription pricing restrictions and an expansion of the Affordable Care Act (ACA), to improve access and strengthen the whole healthcare system.

Although these developments would create pricing pressure for pharmaceutical companies, hospitals and insurance companies could benefit from more insured patients.

Generally speaking, a Harris administration might bring about significant changes in healthcare policies, thus influencing different industry interests.

Infrastructure

Infrastructure spending will most likely remain a primary focus under a Harris administration, which could benefit manufacturing, engineering, and construction companies. Should federal infrastructure projects take priority, these businesses could find more demand for their products and services.

Harris is expected to give top attention to green infrastructure projects, direct funds into networks of electric vehicles and clean energy initiatives, and improve public transportation systems.

As the emphasis on sustainable energy grows, traditional industries could find new challenges; nonetheless, this transition could benefit those businesses focused on sustainable technologies and renewable energy.

Technology

Harris is likely to support more regulations and antitrust actions targeted at big tech firms. Suggested actions may include breaking monopolies and imposing stricter data privacy regulations.

While these developments could challenge big tech companies, smaller businesses might discover benefits in a more fair economy. Since young companies operate in an environment less influenced by larger firms, this change could inspire creativity and development among them.

Defence

The 2024 US election results could cause notable changes in the defence sector. More notably, given Donald Trump’s historical focus on increasing military budgets and modernising the armed forces, stronger defence spending could be expected if he is re-elected.

That said, defence spending is primarily influenced by various factors, including geopolitical events and discussions in Congress regarding the country’s budget.

Investors considering investing in the defence sector might want to pay close attention to the candidates’ campaign promises and policy proposals, as these will offer insights into potential shifts in defence funding.

Moreover, the long-term nature of defence contracts – often lasting through multiple administrations – could provide some stability against market volatility related to elections.

Energy

Considering Trump’s historical stance on pro-oil policies, which include deregulation and a focus on domestic energy production, if he can secure a second term, it could have a significant impact on this sector. This is because of policies already set out by the former president that could boost the profitability of oil and gas companies, which could increase the stock prices due to the potential for higher drilling activity and production.

That said, one should take into account the bigger worldwide energy scene. No matter which government is in control, elements such as global oil pricing, the growth of renewable energy, and climate change legislation will still influence the performance of oil and gas stocks.

Investors looking at this sector for possible opportunities might want to consider conducting thorough research on the long-term implications of factors such as energy policies and market trends.

Financials

The financial sector, which encompasses banks and investment firms, might experience considerable growth if Trump is re-elected.

Many investors anticipate a reversal of the stringent regulations put in place during the Biden administration, with predictions of more relaxed capital standards. This regulation change could boost profitability and encourage expansion within the financial markets.

Trump’s continuous emphasis on tax reduction and deregulation could especially help big banks and financial companies. A more flexible regulatory environment could also lower compliance expenses and provide a more favourable climate for capital markets, possibly influencing increased investment activity.

Lastly, Trump’s trade policies, which focus on protectionism and higher trade tariffs, could see the US dollar become stronger compared to other global currencies, especially the Chinese yuan and currencies from countries he considers adversaries. This shift could create a more advantageous situation for US exports, as a stronger dollar could notably influence trade dynamics.

Healthcare

If Trump is re-elected, it might lead to less government intervention and more deregulation within the healthcare sector.

Trump tried to alter the Affordable Care Act (ACA) during his first term but wasn’t successful. Still, tax changes under his presidency helped to improve the sector’s overall financial situation.

His approach might change the sector’s dynamics and create more possibilities for development, thereby fostering innovation and increased investment.

Infrastructure

The infrastructure industry could see significant growth if Trump gets back into the White House and carries out his plans for increased infrastructure investment. Even though the government will affect the specific investment goals, both major political parties agree on the urgency of upgrades to roads, bridges, and other essential infrastructure.

If significant infrastructure bills get passed, there is a possibility for an increase in demand for building tools and supplies, which could increase revenue and stock prices for businesses involved in this sector.

That said, the overall focus and scale of investments for these projects could vary depending on the administration in office.

Investors in this industry might want to diversify their portfolios since the infrastructure sector’s long-term future stretches beyond short-term political developments.

Technology

The Trump administration might approach the technology sector with a more hands-off approach to regulations, which could benefit large tech companies. This approach could inspire industrial development and innovation, assisting these businesses to prosper free from strong government intervention.

Conversely, persistent trade disputes with nations like China and the potential for more tariffs could pose difficulties for businesses with global supply chains or markets. These challenges could affect tech companies’ overall stability and profitability, prompting investors to thoroughly evaluate the opportunities and risks arising from the political climate.

Portfolio diversification

No matter the election results, maintaining a well-diversified portfolio might be essential. This approach could help mitigate risks linked to market volatility and offer protection against possible economic changes.

A diversified strategy might enable investors to distribute their exposure across different sectors and asset classes, which could boost overall stability. By doing so, market participants could better manage the potential risks and market developments that come with political shifts.

Focus on the fundamental aspects

Investors might want to prioritise companies with strong fundamentals that can flourish despite political changes. Some important factors that might be considered instead of being sidetracked by political news headlines include S&P 500 profit growth, interest rate policies, and the general state of the labour market.

Focusing on these key aspects could help investors make more informed investment decisions.

Keep a long-term perspective

Investors might want to focus on their long-term goals and investment strategy to manage potential market volatility and changes resulting from short-term political events.

This approach could help investors manage their emotional reactions and make more mindful decisions in response to the volatility and changes brought about by short-term political events.