London Daily

Focus on the big picture.
Wednesday, Mar 18, 2026

Wall Street is busy trying to figure out how to profit from a Biden presidency

Wall Street is busy trying to figure out how to profit from a Biden presidency

Joe Biden will be the 46th president of the United States -- and Wall Street is busy trying to figure out how to profit from that.

Monday's big market rally likely had more to do with the reported efficacy of the Covid-19 vaccine that Pfizer (PFE) and BioNTech (BNTX) are working on than Biden's victory.

But market strategists say investors need to start preparing for how a Biden presidency will impact certain sectors.

Infrastructure and solar set to shine


Solar companies and other leaders in the alternative energy industry are poised to be among the bigger beneficiaries of a Biden White House, but that potential windfall may already be priced into the stocks.

The Invesco Solar ETF (TAN) -- which trades under the appropriate ticker symbol TAN -- surged nearly 40% in the past three months on anticipation of a Biden win but has pulled back so far this week. The ETF owns big positions in SolarEdge Technologies (SEDG), First Solar (FSLR) and Sunrun (RUN).

Investors are also betting (and you've likely heard this before) that there will finally be a renewed focus in Washington on passing a big infrastructure spending bill.

There were hopes that the Trump administration would make infrastructure improvements one of its economic priorities, but that never happened. However the need to upgrade highways, railroads and bridges is even more pressing now given the jobs crisis brought on by the pandemic.

The Global X U.S. Infrastructure Development ETF (PAVE) has rallied this week and is up more than 15% over the past three months.

The fund owns stocks such as building supplies manufacturer Fastenal (FAST), construction software firm Trimble (TRMB), power management company Eaton (ETN) and the big railroads CSX (CSX), Union Pacific (UNP), Norfolk Southern (NSC) and Kansas City Southern (KSU).

Experts also point to the fact that Biden, as vice president under Barack Obama, has experience helping the economy recover from a recession.

"Investors should take some solace in the notion that Biden will be in somewhat familiar waters as he begins his Presidency," said Jeff Schulze, investment strategist at ClearBridge Investments, in a report. "As Vice President, Biden took office in the midst of the global financial crisis and helped steer the economy back into an expansion characterized by steady but slow economic growth."

Funds focusing on environmental, social and governance (ESG) issues have also rallied in the past few weeks on expectations of a Biden win. The ESG wave is even impacting the fixed income market. State Street launched a new ESG-focused ETF dedicated to corporate bonds on Tuesday.

Cannabis stocks have also surged as hopes increase for federal decriminalization of recreational marijuana.

The new regime in Washington may also have an impact on the market beyond specific industries and sectors.

Value over growth


Biden's win could usher in a change in the types of investments that drive the overall market. Value stocks may once again thrive while tech and other high growth stocks finally see a slowdown in their epic gains.

"There could be a shift to value sectors like health care," said Andrew Rosen, president of Diversified Lifelong Advisors, in an interview with CNN Business.

"It's healthy to see the recent tech pullback. There needs to be more diversification."

Valuations for tech and other growth stocks may also come under pressure if the economy continues to rebound next year -- a scenario that could pick up pace once a Covid-19 vaccine becomes widely available.

Investors may soon rotate back into hard hit consumer stocks, many of which still pay solid dividends despite the pandemic. With that in mind, defensively oriented stocks -- companies with lots of cash and little debt -- could thrive.

"Companies with stable balance sheets, reliable cash flows, and the capital to bridge the gap created by Covid-19 would outperform," said Lauren Goodwin, economist and multi-asset portfolio strategist with New York Life Investments, in a report Monday.

International stocks, particularly those in markets like China that were a main target of Trump's trade wars, could rebound too.

"Emerging markets could benefit from less of an 'America First' policy under Biden," Rosen added. "He may try to fix some international relationships to pave way for less acrimonious trade policies."

Despite the early returns, it may be unwise to focus too heavily on how markets are doing in the immediate aftermath of the election. Short-term successes could also become longer-term investing flops.

"Financials were the best-performing sector on the day after the 2016 election, and that group, along with energy, were the top two over the ensuing month," ClearBridge's Schulze noted. "While these groups continued to show strength into early 2017, they have been two of the three worst-performing sectors since."

Newsletter

Related Articles

0:00
0:00
Close
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
AI-Generated Singer Becomes Viral Voice for Iranians With New Anthem
London Private Club Founder Plans Exclusive Palm Beach Venue Near Trump’s Mar-a-Lago
Ed Davey Urges Britain to Build Fully Independent Nuclear Missile Capability
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
US Treasury Links British Polo Patrons to Alleged Venezuelan Oil Proceeds Laundering Scheme
Hundreds Gather in London Despite Ban on Annual Pro-Palestinian March
Two Dead and Multiple Students Seriously Ill After Invasive Meningitis Outbreak at UK University
UK Considers Deploying Ships and Mine-Hunting Drones to Reopen Strait of Hormuz
Starmer and Trump Discuss Urgent Need to Reopen Strait of Hormuz Amid Escalating Iran Conflict
Prince Harry and Meghan Markle’s Planned Australia Visit Draws Mixed Reaction From Local Communities
Trump Calls on France and UK to Help Safeguard Strait of Hormuz Shipping Route
Boris Johnson Labels Bitcoin a ‘Ponzi Scheme’, Sparking Debate in Crypto World
UK Considers Targeted Aid for Vulnerable Households as Energy Costs Rise
Stellantis Urges Immediate Review of UK Electric Vehicle Sales Targets
Home Office Reverses Course to Allow Some Dual Nationals to Enter UK Using EU Passports
Reform UK Proposes Replacing Top Civil Servants With Officials Aligned to Government Agenda
Netflix Adds Critically Acclaimed ‘Best Film of 2025’ With Perfect Rotten Tomatoes Score
‘The Sums Don’t Add Up’: UK Farmers Hit by Soaring Costs as Iran War Disrupts Global Supplies
Confidential UK Biobank Health Records Found Online After Researchers Accidentally Expose Data
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
×