Original title: If Biden wins the presidential election, you should buy Tesla shares! Source: Financial Industry Website
Regardless of who wins the 2020 election, stock investors will be able to find stocks to bet on.
RBC Capital Markets has selected a list of stocks that should be investors in two different situations for clients, and classified them according to different industries.
Here's the specific list:
1. media industry
If Trump wins, Discovery Communications (DISCA) should be bought. The reason is that if Trump is re-elected, he will be relatively more relaxed in terms of mergers and acquisitions and tax policies, and may tax the profits of overseas subsidiaries relatively low, while DISCA's exposure to international business is very high.
If Biden wins, he should buy Fox (FOXA). Because if Biden takes office, the corporate merger and acquisition policy may be tightened, then Fox, which will not carry out substantial mergers and acquisitions, will outperform. Although we acknowledge that Trump's re-election would be good for the more conservative FOX, we should note that during Obama's administration, FOX's advantage over CNN and MSNBC was still strong.
2. Catering industry
If Trump wins, he should buy McDonald's (MCD). The reason is that McDonald's is relatively large and can still gain more market share in an uncertain macro environment.
If Biden wins, he can still buy McDonald's. Because we think that if Biden is elected and the Democratic Party sweeps, it will be bad for the restaurant industry, but since McDonald's accounts for a relatively large share of international business, there is less risk of tax increases, and the 93% franchise model also leaves McDonald's basically unaffected by salary increases.
3. automotive industry
If Trump wins, he should buy General Motors (GM). The reason is that if Trump is re-elected, the current status quo is likely to continue, yet we think GM's prospects are good, and the inventory of more profitable trucks is still low.
If Biden wins, he should buy Tesla (TSLA). Because market sentiment about electric vehicles is likely to remain high, and Tesla is the leading electric vehicle company.
4. software industry
If Trump wins, he should buy Zoom Video Communications (ZM). The reason is, we believe Zoom will still benefit from the ongoing spread of COVID-19 and travel restrictions.
If Biden wins, he should buy Workday (WDAY). Because the current situation has catalyzed the development of modern ERP systems, such as WDAY. However, until everything is normalized, the growth of large orders is still relatively slow.