As the U.S. election approaches, the U.S. stock market has gradually formed a new investment theme-the "Harris trade."
$NVIDIA (NVDA.US)$ $Apple (AAPL.US)$ The term stems from anticipation of U.S. Vice President Kamala Harris running for president and the potential impact her policies could have on the economy and businesses. Some investors in the market are adjusting their investment portfolios based on the prospect that Harris may win the election, which also reflects the trend of investors gradually "choosing sides."
The "Harris Deal" is similar to previous "Presidential Deals" and is based on speculation about the candidate's future policies. Harris' policy positions have attracted attention in multiple areas, especially in industries such as clean energy, technology and health care.
Her campaign platform said she would push for a green energy transition, tighten regulation of the tech industry and expand health care. These policies bring huge development opportunities to specific industries, but also mean that other industries may face stricter supervision and pressure. Judging from the current market reaction, investors who support clean energy, artificial intelligence and high-tech companies appear to be betting on Harris' victory.
In the summer of 2024, U.S. stocks related to new energy and green technology, such as electric vehicle companies and solar companies, experienced significant gains.
As the "Harris Trade" gradually takes shape, there are also differences in the strategies.
Choose to overweight green energy and technology stocks, hoping to benefit from policy changes after Harris wins the election;
Choosing investments in traditional energy, military industries or large financial companies can help cope with possible increased regulation and market fluctuations.
Harris trade, her policies will benefit U.S. global competitiveness in the areas of climate change and technological innovation. Such as investing in clean energy, artificial intelligence and autonomous driving technology company stocks. The Harris administration will promote more policies to support these areas and bring greater growth opportunities.
There are still some investors in the market who are concerned about Harris' policies, especially for those industries that will be negatively affected by the policies. For example, the traditional oil and gas industry may face more stringent environmental regulations, while technology giants may also encounter stricter antitrust and data privacy regulations.
Therefore, conservative investments can be made and investments in oil, natural gas and military enterprises can be increased to hedge possible market risks.
As the "Harris trade" gradually took shape, market volatility also increased.
Investors’ expectations for Harris’ election and her policies are driving capital flows across sectors, with clean energy-related industries attracting significant inflows. At the same time, conservative investors in the financial market are also strengthening defensive strategies to deal with market uncertainty through hedge funds and safe-haven assets.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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The underlying logic of stock market trading is to stifle human nature
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Clement Lemons : okk
Supermengg :
LittleSoldier : It’s obvious the writer of this article is a Democrat, mentions nothing about Trump and his policies? Because there is no comparison between the two I would have to agree that it is politically motivated to sway voters, and there for has no real credibility!!
Turnbuckle LittleSoldier : Agree
Alen Kok : ok
Simon 5183 : Where does a clueless person like her get policies from? What potential impact and expectations might her policies have on the economy and businesses?
102181510 : o.k
Lee Kuan Sieong : g
LittleSoldier Simon 5183 : Indeed! I found it also interesting that there was no mention of a corporate tax hike of 28%, and no mention of price controls and the effects those would have on the market as well. Nor was there any mention of the housing markets?? Speaking of her policies where they were derived from is Farley Easy, she copied and pasted them from Bidens policies and stoled the rest from Trump. Other than those that we currently know of are mentioned above
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104476495 : h
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