London Daily

Focus on the big picture.
Thursday, Mar 12, 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
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
British Troops in Iraq Intercept Iranian Drones Targeting Coalition Base
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
UK Ready to Back Emergency Oil Reserve Release as Middle East Conflict Pushes Prices Higher
Study of 40,000 Articles Sparks Debate Over Alleged Anti-Muslim Bias in UK Media
US and UK Army Chiefs Strengthen Cooperation on the Future of Armored Warfare
Britain’s Search for the Next ARM Intensifies as Startups and Investors Target the Semiconductor Frontier
Three US Strategic Bombers Arrive at RAF Fairford as Iran Conflict Intensifies
Cancer Death Rates in the UK Fall to the Lowest Level on Record
UK Government Bond Yields Retreat Slightly After Sharp Spike Triggered by Middle East Conflict
UK Chancellor Warns Middle East War Could Push Inflation Higher
UK Prime Minister Warns Iran Conflict Could Drive Up Prices and Threaten Economic Stability
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
×