If you’ve been viewing the polls lately then you may be aware that there is a very real chance that Joe Biden might win the 2020 Presidential Race. Now, I’m not here to pick sides, I’m here to make-you-money! Here are my three things to look for when buying stocks in 2020.
1. Marijuana will become decriminalized-
Senator Harris has been very vocal about decriminalizing Marijuana. Currently, as it stands multiple states and countries ( Canada and possibly soon Mexico ) have legalized the recreational use of Marijuana. Decriminalizing isn’t the same as Legalization however, but this is one-hundred percent a sign that the days of illegal marijuana are going to be over soon. As it stands many marijuana stocks are gaining traction in the market include the Las Vegas superstore Planet 12 ( PLNHF ), Curaleaf (CURLF) and Canopy Growth ( CGC )
2. Market forecasting will be more stable-
During President Trumps tenure there have been a few very distinct dips. Typically due to erratic or unpredictable circumstances such as the largely not-won China Trade War. Due to President Trump’s unpredictable nature this makes economic forecasting difficult because he may want to ban TikTok one month ( Failed ) or start a war with North Korea the other ( nothing came of this as well ). As an investor purchasing stocks under Joe Biden one could expect that the market would feel more stable, with less dips and pumps. However, I have bought the dips on all of these Trump “occasions” and did very well under Trump. However-the ability to do long term forecasting is difficult in the current political climate and being able to invest in my future is something I would like as well as making short-term gains
3. Joe Biden’s Tax Plan isn’t as hated as you think-
A big bonus of Trumps presidency is how he slashed corporate tax from 35% to 21%. This greatly increased the amount of profit corporations had on their bottom-line immediately having stock market benefits. However, this investment into a “Trickle-Down” economy hasn’t exactly worked out. As the Coronavirus Recession/Pandemic continues corporations are continually laying off workers and reducing employment opportunities. The mixture of self-preservation and the lining of big-corpate money has made the wealth gap almost impossible to cross without help. Having higher taxes on the ultra-wealthy, and corporations although will reduce short term profitably, will has a great long term effect in funding educational, entrepreneurial , and business endeavors. Hopefully raising the future generation in a way that allows the middle or lower classes to close the wealth gap or have access to abundant education for those that are looking to get ahead.
4. The economy can’t re-open under Trump
As it stands, parts of America are actively participating in achieving heard-immunity. This is something gained through mass-exposure to a virus. However, this method doesn’t typically work as the politicization of Coronavirus has become too great. Some states agree with being safe, wearing PPE, Etc while others prefer the herd-immunity style. This makes a re-opening scenario become almost impossible. Let’s do a case study– I am the owner of a fancy California Restaurant- my loyal customers typically travel in from other states. Well. due to mixed coronavirus responses I, as the owner, cannot trust that everyone coming into my store is safe or not sick. Therefore, I either open at half-capacity or I keep doing to-go orders which do not require a wait staff, a buser, and a janitor at the end of the night. Arguably neither scenario is likely, to fully reopen we need to be able to trust our fellow Americans to be proactive and safe to do business with. At the moment restaurants are making more money doing to-go and some may never return due to the ease of running this style compared to being full-service. Joe Biden would surely make masks mandatory and attempt to level the response so all Americans are on the same page as to what our customers are doing. Speeding up recovery and boosting the stock market.<p value="<amp-fit-text layout="fixed-height" min-font-size="6" max-font-size="72" height="80"><strong>Final Thoughts- </strong>
A Joe Biden Presidency might not blow your mind or grow your wallet a ton- however, it will be stable. As he will be receiving a country stricken with a Pandemic, a Recession and Racial Tensions all rolled into one. Mr.Biden can’t afford to think about your wallets. Getting Americans back to work safely, while adding the jobs back in companies that no longer want to add those jobs will be priority number one I am sure. But this focus, the inevitable Dip in the markets soon- will show itself to have been an excellent buying opportunity.