Investing Insights

I often tell my friends that financial markets are the absolute best predictor of future outcomes. It’s hard to deny such a phrase when you consider the large amounts of money that are being put to work on a daily basis, the resources that go into various degrees of research, and the businesses that are being built. The market really is a predicting machine.

When I am asked by others what I think will happen with an election, I often ask a question right back: “What do the markets think?”

In the list below, I’ve created a list of all the stocks that matter as we head into the 2024 election. Please keep in mind that this compilation aims for novelty, showcasing lesser-known companies instead of industry giants like Apple or Amazon. It’s intended for astute investors and inquisitive minds, offering fresh perspectives and potentially overlooked insights.

How can you use this list? Here’s an example: watch the performance of Black Rifle Coffee Company, ticker BRCC, in the coming months as it could signal market expectations for 2024. Black Rifle Coffee Company is the right wing version of Starbucks, and thus, one might expect that it’s performance will show you something insightful. A similar trend might apply to an electric vehicle stock favored by Democrats.

The Mega Stealth Election Picks:

1. Bandwidth (BAND): Bandwidth stands out in the telecommunication sector, offering robust strategies for campaign communications, such as mass texting and calling services. It is the center piece for all new digital communications and this makes it a key player during election seasons when effective outreach is crucial.
2. Digital World Acquisition Corp (DWAC): DWAC has garnered attention as the financial vehicle for Trump’s social media endeavors, making it a significant stock to watch given its direct ties to political movements and potential regulatory scrutiny.
3. Black Rifle Coffee Company (BRCC): With its firm roots in military culture and conservative branding, BRCC offers a unique consumer stock angle tied to political currents, differentiating itself from mainstream competitors like Starbucks.
4. Fluor Corp (FLR): Specializing in engineering and construction, Fluor is a notable beneficiary of infrastructure and defense spending, with a particular focus on border security projects that are often highlighted in political debates.
5. Axon Enterprise Inc (AXON): Axon’s portfolio, which includes law enforcement and public safety technologies, positions it as a stock influenced by domestic security policies and law enforcement funding.
6. Oshkosh Corp (OSK): Involved in manufacturing electric vehicles for the USPS, Oshkosh stands at the intersection of government contracting and the green energy push, making it a stock to watch.
7. Canopy Growth (CGC): The cannabis sector, represented by CGC, is directly influenced by legislative changes and could see significant movement based on election outcomes and subsequent marijuana policy reforms.
8. Enphase Energy (ENPH): Specializing in energy management solutions, ENPH is another key beneficiary in the solar energy boom, aligning with green policy shifts.
9. ChargePoint (CHPT): As the electric vehicle market expands, CHPT’s network of charging stations is crucial infrastructure, likely to grow with supportive policy.
10. Leidos Holdings Inc (LDOS): A defense contractor with a broad portfolio, LDOS is sensitive to changes in defense spending and policy, making it a pertinent election stock.
11. AeroVironment, Inc. (AVAV): Specializing in drones and unmanned aircraft, AVAV is at the forefront of modern warfare and surveillance, areas often highlighted in defense policy discussions.

The Political Power Plays:

14. Palantir Technologies (PLTR): Known for its data analytics solutions, Palantir serves government and defense sectors, making it susceptible to shifts in federal spending and policy priorities.
15. Raytheon Technologies (RTX): As a major player in the aerospace and defense industry, RTX is directly impacted by government defense budgets and international relations, aspects often influenced by election outcomes.
16. Lockheed Martin (LMT): A leading defense contractor, Lockheed Martin’s fortunes are closely tied to defense policies, which can shift significantly with a change in administration.
17. First Solar (FSLR): As a leading player in the solar energy industry, FSLR is well-positioned to benefit from policies favoring renewable energy expansion.
18. Brookfield Renewable Partners LP (BEP): BEP represents a solid investment in the green energy transition, a sector that tends to flourish under environmentally friendly administrations.
19. Sturm, Ruger & Co., Inc. (RGR): As a company that manufactures firearms, Sturm, Ruger & Co. could be impacted by changes in gun control legislation, which is often a contentious election issue.

The Covert Opportunities:

1. Iridium Communications Inc. (IRDM): Specializing in satellite communications, Iridium could benefit from defense spending or infrastructure plans that emphasize improved communication technologies.
2. Ligand Pharmaceuticals Incorporated (LGND): Operating in the biopharmaceutical industry, Ligand could be influenced by healthcare policy changes and pharmaceutical regulations discussed during elections.
3. SunPower Corporation (SPWR): As a company focused on solar energy, SunPower can be impacted by policies promoting renewable energy and sustainability initiatives.
4. Vista Outdoor Inc. (VSTO): Producing outdoor sports and recreation products, Vista Outdoor could see changes based on gun legislation and environmental policies.
5. Trex Company, Inc. (TREX): Specializing in composite decking and railing, Trex could benefit from housing and infrastructure policies that encourage sustainable building materials.
6. The Greenbrier Companies, Inc. (GBX): As a supplier to the railroad industry, Greenbrier might be influenced by transportation policies and infrastructure spending.
7. Ballard Power Systems Inc. (BLDP): Engaged in proton exchange membrane fuel cell development, Ballard Power could gain from clean energy initiatives and policies.
8. Civitas Resources, Inc. (CIVI): An energy company focused on responsible oil and gas development, Civitas could be impacted by energy policies and regulations.
9. TPI Composites, Inc. (TPIC): A manufacturer of composite wind blades, TPI Composites stands to benefit from renewable energy policies and investments in wind power.

In conclusion, these stocks represent a blend of industries and sectors that could be influenced by the electoral pulse. Investors should keep a keen eye on these names as they navigate the markets amidst the political whirlwind, ensuring their portfolios are aligned with potential policy shifts.

Final note: I’ll be updating this list all year, so please check back as the year goes on for more research, picks, and movement on this list.

Want to know my political thoughts? Read this post.