Harris advocates for tax cuts for low- to middle-income groups and higher taxes for the wealthy, which is beneficial for the consumer sector; he hopes to promote American exports, and large multinational corporations will benefit; he supports the development of clean energy, benefiting electric car and photovoltaic stocks, among others.
As Biden announced his bid for the 2024 US presidential election, Vice President Harris became a "hot favorite" for the Democratic presidential nomination. Although Harris has not formally announced her candidacy, investors have begun to pay attention to the possible economic policy changes she might bring.
According to reports on Tuesday, some analysts believe that Harris's advocacy may be more progressive than the "Biden economics", such as holding a more radical position on clean energy issues.
Like Trump, Harris advocates for tax cuts, but for middle- and low-income households. For the wealthy and businesses, she seeks to increase taxes. On exports, Harris is against trade protectionism and hopes to promote US exports.
Vasu Menon, OCBC Bank's managing director of investment strategies, believes that Harris winning the US presidential election would be favorable for the market. Under Democratic rule, the Federal Reserve can continue its monetary policy under "political continuity and less policy uncertainty".
1. Advocating tax cuts for middle- and low-income groups.
During her campaign, Harris proposed to provide a $500 monthly tax credit for those earning less than $100,000 a year, to replace Trump's 2017 tax policy. This legislative proposal is known as the "Middle Class Prosperity Act".
At the same time, she plans to increase the estate tax to fund a $300 billion teacher pay raise program, known as the "largest federal investment" in teacher salaries in US history, which differs from Biden's proposal to raise corporate tax rates.
Analysis shows that if the middle class benefits, the consumer sector and small-cap consumer ETFs may benefit.
2. Strengthening US exports.
Harris criticized Trump's trade policy, emphasizing the need to strengthen US exports. She opposes Trump's tariff plan, saying it will increase consumer spending on gasoline and groceries, affecting middle-class families.
During the Democratic primaries in late 2019, Harris said she supported promoting US exports and declared, "I'm not a protectionist Democrat."
If Harris is elected, large multinational companies and large stock ETFs may benefit, as large multinational companies often have a wider global coverage and focus on exports.
3. Supporting clean energy.
Like Biden, Harris's position on climate and energy policy is particularly clear.
A key achievement during Biden's term was the signing of the Inflation Reduction Act, the largest climate spending bill in US history, which could reduce greenhouse gas emissions to less than 42% of 2005 levels by 2030.
As vice president, Harris has always supported the Biden administration's climate policies, including the Inflation Reduction Act. She advocates for a $20 billion appropriation for the Environmental Protection Agency's greenhouse gas reduction fund to support clean energy development.
In addition, Harris emphasizes increased regulation of oil companies and other polluting companies. She has sued several fossil fuel companies and sued a pipeline company for oil spills, and has launched an investigation into whether ExxonMobil misled the public on climate change.
4. Advocating for reduced housing burden.
Harris attaches great importance to the affordability of US residents. She proposed the "Rent Relief Act" to provide tax credits for tenants earning less than $100,000 a year, which may benefit the US real estate industry.
5. No clear position on cryptocurrencies.
Harris doesn't have a clear stance on cryptos yet, unlike other politicians in Congress. Harris has never expressed her stance on digital currency, tokenization, blockchain, or NFTs.
However, some analysts believe that Harris is likely to continue Biden's policies because of her political ties to him. Harris's supporters mostly come from the Biden camp.
6. Has a cautious attitude towards AI.
From her previous speeches, it can be seen that Harris has a cautious attitude towards AI.
Harris once said that when government institutions use AI tools, they are now required to verify that these tools will not endanger the rights and security of the American people.
Harris met with executives of several leading US technology companies in the first half of the year to discuss key issues related to AI. She once said that President Biden "expects companies like yours to ensure the security of their products before offering them to the public."
Editor/Somer