I’m a Stock Trader: 3 Reasons I Think Harris Would Be Better for My Portfolio
Written by
Joel Lim
Edited by
Zuri Anderson
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As the election draws ever nearer, it is up to voters to decide who to vote for: Donald Trump or Kamala Harris.
Both candidates have dramatically different takes on the state of this nation and their approaches to where to take the country over the next four years. Good arguments can and have been made for both sides.
One area voters might want to look at is the financial sector. Policies, legislation passed and even speeches given by presidents can have a dramatic impact on the economy. From inflation to stock trades, what influence might each president have on your wallet and portfolio?
Rita Martinak, a certified business economist (CBE) and stock trader with over 10 years of experience, has agreed to weigh in on this conversation from a financial perspective.
She delivers 90% accurate economic forecasts and data-driven strategies that drive significant business growth. Now, she offers freelance consulting at COMPACOM, helping businesses make informed, strategic decisions.
Here are three reasons she likes Harris in this election for her portfolio.
1. Infrastructure, Technology and Renewable Energy
In general, federal investment in infrastructure, technology and renewable energy is good for the American economy and good for everyday Americans. Why?
Typically, these projects call for American companies to work on roads, bridges, schools, forests, parks, cyber structures, cybersecurity, and more. These American companies employ American workers, who then have more money to spend on consumer goods, which enriches businesses, which can then employ more workers, and the cycle continues. It is a great way to get more money circulating throughout the country.
Just one week shy of the election, the Harris-Walz team has committed to investing billions in infrastructure projects, including clean ports, transportation, waterways, and more.
“Her focus on infrastructure projects can boost construction and technology companies, providing innovative solutions for modernizing transportation and utilities,” Martinak said. “Companies in the renewable energy sector, such as wind and solar power, can witness increased investments and growth.”
Why does this matter?
“Harris’ emphasis on infrastructure, technology and renewable energy can significantly benefit your stock portfolio in these sectors,” Martinak continued.
As these companies do well, their stocks will rise, and so will your portfolio.
2. Financial and Healthcare Industries
When it comes to finance and healthcare, Martinak warned that we’ll be dealing with a mixed bag.
After all, Harris tends to favor regulations and compliance, which can be costly to banks and other financial institutions up front. Those costs will likely be passed on to stockholders.
At the same time, we’ve seen what unleashed capitalism can do in the past. Just look at the 2008 recession or the Great Depression back in the 1920s.
As Martinak noted, regulation and compliance can “promote stability and transparency, potentially reducing systemic risks and fostering long-term growth.”
In the healthcare industries, along the same vein, Martinak sees the benefit of “expanding access and reducing costs in the healthcare sector,” benefiting “companies that provide affordable healthcare solutions and innovative treatments.”
Still, she worried that increased scrutiny and regulation “can pose challenges for larger healthcare providers and pharmaceutical companies.” Those challenges tend to be costly, and those costs may be passed down to consumers and stockholders.
3. Consumer Spending on Retail and Consumer Goods Sectors
Finally, Martinak is optimistic about Harris’ emphasis on raising the quality of life for the middle class.
“It can lead to an increase in consumer spending, which positively influences stocks in the retail and consumer goods sectors,” she said.
Furthermore, she explained that as Harris focuses on reducing costs for everyday expenses for the middle class, like groceries, healthcare and housing, the middle class will have more disposable income.
This increase in disposable income will boost demand for consumer goods and “drive growth in companies in these sectors.” Martinak also expects to see tax credits and other forms of stimulus to the economy through Harris’ Democratic policies.
This again will put more money into circulation in the everyday economy, which enriches companies and increases the trading value of their stocks.
The Bottom Line
In the end, it will be interesting to see how much of Harris’ plan comes to bear if she wins. Experts like Martinak are putting their money on her to fulfill her promises.
Likewise, what might we see under a Trump presidency? Just Harris’ proposed policies, that depends on the global trends, Congress and other factors.
It’s up for debate as to how this next four years will go.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out I’m a Financial Expert: 7 Best Areas To Invest Your Money If You Think Trump Will Win the Election.
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